Thermax acquires remaining 24% stake in First Energy; stock dips 2%

The equity shareholding of the company in FEPL stands increased from 76% to 100%. Now, FEPL is a wholly owned subsidiary of the company.

Dec 22, 2020 09:12 IST India Infoline News Service

Thermax Limited has acquired the remaining 24% stake in First Energy Private Limited (FEPL) an alternative energy solution company, effective December 21, 2020. Accordingly, the equity shareholding of the company in FEPL stands increased from 76% to 100%. Now, FEPL is a wholly-owned subsidiary of the company.

“Thermax Limited, a global engineering solution provider in the energy and environment sectors, signed an agreement on July 15, 2015 for stage-wise acquisition of FEPL over the next four to six years. FEPL focuses on consumers in the commercial and home cooking segments. Its brand, Oorja, a combination of a 'micro-gasification' stove and biomass-based pellet fuel, is adopted by several customers as a substitute to fossil fuels such as LPG and diesel.

The acquisition provided to the company new opportunities in the commercial space to serve customers with alternative and cost saving solutions,” company said in a regulatory filing on Monday.

“Total 32,31,928 shares i.e. 24% paid up share capital of FEPL is acquired at a consideration of Rs1,” it added.

At around 9.58 am, Thermax Ltd was trading at Rs886.00 per piece down Rs21.60 or 2.38% from its previous closing of Rs907.60 per piece on the BSE.

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