Shares of HEG Ltd climbed over 5% in early trading on March 11 after the company announced a ₹250 crore investment from Singularity Growth Opportunities Fund II into Bhilwara Energy Ltd. The investment, which will be made through a share subscription and shareholders’ agreement, is aimed at strengthening Bhilwara Energy’s financial position and expanding its business operations.
As of 10:05 am the shares were trading 5.21% higher at ₹408.00 on NSE.
According to the regulatory filing, the investment will be in exchange for 1.76 crore equity shares of Bhilwara Energy at a face value of ₹10 per share, giving Singularity and its affiliates a 9.6% stake in the company. The agreement also grants Singularity the right to nominate one director to Bhilwara’s board, reflecting its active role in the company’s strategic direction.
Additionally, Singularity has an option to invest another ₹250 crore, with the price per share determined based on fair market value at the time of exercise but not lower than ₹142.08 per share. Despite this transaction, HEG will retain a controlling 44.30% stake in Bhilwara Energy.
Following the announcement, HEG’s stock surged to ₹404 per share, reflecting positive investor sentiment regarding the fund infusion. This investment marks a key step in Bhilwara Energy’s expansion strategy and underscores confidence in its future growth potential in the renewable energy sector.
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