Shah Metacorp share price jumped over 4% on Tuesday after the company announced investment in the renewable energy sector by acquisition of a significant stake in Strike Eco. The penny stock rallied as much as 4.76% to ₹5.50 apiece on the BSE.
However, Shah Metacorp shares succumbed to profit booking at higher levels and traded flat.
The Ahmedabad based manufacturer and exporter of stainless steel and mild steel long products, Shah Metacorp invested 26% stake in Strike Eco Grid Private Limited to explore a strategic association in the renewable energy and sustainable infrastructure space.
As part of the proposed transaction, Shah Metacorp plans to acquire an initial stake of up to 26% in Strike Eco, subject to due diligence, regulatory approvals and execution of definitive agreements.
The company may further increase its stake in Strike Eco up to 75% in phases based on business performance, project execution and mutual approvals.
“This equity investment marks the company’s official entry into renewable energy initiatives, spanning solar Engineering, Procurement, and Construction (EPC), captive and open-access power projects, renewable infrastructure, and ESG-related businesses,” Shah Metacorp said in a release.
The company also plans to provide funding support of up to ₹25 crore for renewable energy projects across solar EPC, captive and open access power projects, renewable infrastructure and ESG related businesses.
Shah Metacorp may arrange further funding support up to ₹36 crore in a phased manner within 2 years, based on business performance.
Investment in Strick Eco may also create a framework for jointly developing solar power generation projects and renewable infrastructure opportunities in the coming years. Both companies will explore opportunities across solar parks, captive and open access projects, carbon credit advisory, ESG and sustainability consulting, energy storage and green hydrogen, it added.
The association will also focus on expanding into government, institutional and international renewable energy opportunities as part of its long term growth plans, the company said.
Shah Metacorp Share Price Performance
Shah Metacorp share price has gained over 7% in three months and has risen 4% on a year-to-date (YTD) basis. The penny stock has rallied over 32% in six months and has surged 67% in one year. The smallcap stock has jumped 74% in three years and has delivered multibagger returns of 140% over the past five years.
At 2:18PM, Shah Metacorp share price was trading 0.76% lower at ₹5.21 apiece on the BSE.
