Shares of AuSom Enterprise Ltd surged by 5% today, reaching the upper limit at ₹104.30 per share following an important business development. This uptick occurred after the company announced a new contract with Gujarat Urja Vikas Nigam Limited (GUVNL), which marks a significant step in its renewable energy ambitions.
AuSom Enterprise secures power procurement order
In a statement to the stock exchange, AuSom Enterprise disclosed that it had received a Letter of Intent from GUVNL dated 11th November 2024, authorising the company to supply power under a competitive bidding arrangement. This contract comes as AuSom looks to diversify and strengthen its energy portfolio, reinforcing the company’s appeal to investors looking to invest in stocks with a sustainable future.
Establishing a wholly-owned subsidiary to power solar energy
To execute this project, AuSom Enterprise plans to establish a wholly-owned subsidiary, which will operate as a Special Purpose Vehicle (SPV). The SPV, tentatively named either AuSom Power Private Limited or AuSom Energy Private Limited, will handle the operations of this solar project. Registered in Ahmedabad, Gujarat, the SPV will be responsible for managing a 50 MW Solar Photovoltaic (PV) Power project for GUVNL under a 25-year agreement at an affordable rate of ₹2.55 per kWh.
This investment not only adds to the company's renewable energy portfolio but also gives stockholders an opportunity to invest in stocks that contribute to long-term energy sustainability.
AuSom Enterprise's diverse business interests
Founded in 1984 and part of the Mandalia Group, AuSom Enterprise has diversified interests across various sectors, including commodities trading, jewellery manufacturing, and financial markets. The company also engages in trading precious metals like gold and diamonds, mutual fund units, and derivative transactions. Its wide-ranging portfolio provides a solid base for investors who wish to invest in stocks with broad sectoral exposure.
In FY23, the company facilitated related-party transactions worth up to ₹1,000 crore with entities such as Zaveri and Company Pvt. Ltd. and Swadeshi Distributors LLP. Furthermore, AuSom has expanded through joint ventures in hydroelectric power, waste management, real estate, and precious metal refining, providing a broader investment landscape.
Financial performance and stock milestones
The market capitalisation of AuSom Enterprise stands at ₹142.09 crore, as per the Bombay Stock Exchange (BSE). The stock’s 52-week high is ₹185.75, and its low is ₹64.05, reflecting its potential for growth within a volatile market. Today’s 5% upper circuit at 9:55 AM showed continued strong performance, with the BSE Sensex trading steadily at 79,493.26 levels.
Renewable energy focus attracting investors
The recent focus on solar energy and renewable projects aligns with global trends in sustainable development. By targeting renewable energy through solar PV power, AuSom Enterprise positions itself as a promising prospect for environmentally conscious investors looking to invest in stocks within this booming sector.
For those looking to invest in stocks with diversified business strategies and a focus on sustainability, AuSom Enterprise’s growth trajectory presents a compelling opportunity. With this new contract in the renewable energy sector, the company is likely to garner significant interest from investors seeking long-term gains in a future-ready market.
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