Uflex rallies nearly 4% on acquiring 5% stake in Onevolt Energy for ₹9.6 crore

In a filing to the stock exchanges on Tuesday, the company said that it has acquired 5.03% stake in Onevolt Energy Private Limited. Uflex Ltd acquired 96 lakh shares of Onevolt Energy at ₹10 per share for a sum of ₹9.6 crore.

The company informed the stock exchanges that the acquisition has been done for generating electric power using solar energy. The company said that the acquisition will be completed within seven business days from the closing date.

Onevolt Energy, incorporated in 2020, is engaged in power generation and distribution, and setting up of solar power plants. The company doesn’t have any turnover on its balance sheet and it has an ‘other income’ of ₹58.61 lakh as per the company’s special purpose balance sheet as on December 31, 2023, Uflex informed the stock exchanges.

In its earnings report released last week, on May 28, Uflex Ltd reported a 3% rise in consolidated total income in the March quarter to ₹3,496.7 crore against ₹3,393.5 crore in the corresponding quarter of the preceding fiscal. The company posted a net loss of ₹270.95 crore in Q4FY24 compared to a profit of ₹83 lakh in the year-ago period.

Uflex’s total income for the March quarter grew more than 4% compared to ₹3,345.4 crore in the quarter ended December. The company had posted a net loss of ₹67.27 in the December quarter.

The company’s total income for the financial year ended March 31 fell nearly 9% to ₹13,510 crore compared to ₹14,784 crore in the preceding fiscal. The company posted a net loss of ₹691.16 crore in FY24 compared to a net profit of ₹480.76 in the preceding fiscal.

Shares of Uflex Ltd closed 3% higher at ₹417.65 apiece on the NSE.