Penny Stock Below ₹10 Retracts Following Approach to 52-Week High
Shah Metacorp Sees 4% Jump in Share Price Following Renewable Energy Investment
Shah Metacorp, an Ahmedabad-based manufacturer and exporter of stainless steel and mild steel long products, saw its share price jump over 4% on Tuesday after the company announced an investment in the renewable energy sector. The company acquired a significant stake in Strike Eco Grid Private Limited, with plans 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 the 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.
Investment Details
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Stake | Initial Stake | Maximum Stake |
|---|---|---|
| Strike Eco | Up to 26% | Up to 75% |
This equity investment marks Shah Metacorp'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. 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. The investment in Strike 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.
The association will also focus on expanding into government, institutional, and international renewable energy opportunities as part of its long-term growth plans. Shah Metacorp's 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.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Share Price Performance
| Period | Return |
|---|---|
| 3 Months | 7% |
| YTD | 4% |
| 6 Months | 32% |
| 1 Year | 67% |
| 3 Years | 74% |
| 5 Years | 140% |
At 2:18 PM, Shah Metacorp's share price was trading 0.76% lower at ₹5.21 apiece on the BSE.
Investor Takeaway
Investors should be cautious of profit booking at higher levels for Shah Metacorp shares.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
