Techno Electric & Engineering Company shares rallied 5 percent intraday Thursday after sale of wind power assets by the company.
The company has sold 33 MW wind power assets in Tamil Nadu at an effective valuation of Rs 165.19 crore.
Post this transaction, it continues to hold 12 MW of wind power assets.
PP Gupta, MD of the company told CNBC-TV18 that improvement of 25 basis points is expected on return on equity (RoE) going forward. The company will be looking to sell off its remaining 12 MW assets in Tamil Nadu.
For its 118 MW assets, the company will look for a merger before selling it, he said.
Techno Electric along with its subsidiary Simran Wind Project will have a portfolio of 129.9 MW of wind power asset post above transaction, the Kolkata-based engineering, procurement and construction services provider said in its filing.
During six months period ended September 2016, the company reported a solid 44.1 percent growth in profit at Rs 118.6 crore and 40.5 percent growth in revenue at Rs 638.5 crore compared with year-ago period.
At 12:43 hours IST, the stock was quoting at Rs 357.20, up Rs 13.80, or 4.02 percent on the BSE.
Posted by Sunil Shankar Matkar