Shah Metacorp shares jumped 4.76% to ₹5.50 on Tuesday following the company's announcement of a strategic investment in the renewable energy sector. According to reports from Livemint, the Ahmedabad-based manufacturer and exporter of stainless steel and mild steel long products invested 26% stake in Strike Eco Grid Private Limited to explore strategic association in renewable energy and sustainable infrastructure space. However, the penny stock succumbed to profit booking at higher levels and traded flat thereafter.
As reported by Livemint, Shah Metacorp plans to acquire an initial stake of up to 26% in Strike Eco subject to due diligence, regulatory approvals and 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. The investment includes 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. Additionally, Shah Metacorp may arrange further funding support up to ₹36 crore in a phased manner within 2 years based on business performance.
According to Livemint, the investment in Strike Eco 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 association will focus on jointly developing solar power generation projects and renewable infrastructure opportunities, exploring opportunities across solar parks, captive and open access projects, carbon credit advisory, ESG and sustainability consulting, energy storage and green hydrogen. Both companies will explore government, institutional and international renewable energy opportunities as part of their long-term growth plans.
As reported by Livemint, Shah Metacorp shares have demonstrated strong performance across multiple timeframes, gaining over 7% in three months and rising 4% on a year-to-date basis. The penny stock has rallied over 32% in six months and surged 67% in one year, with the smallcap stock jumping 74% in three years and delivering multibagger returns of 140% over the past five years. At 2:18PM, the stock was trading 0.76% lower at ₹5.21 apiece on the BSE, reflecting the profit booking that followed the initial rally.
According to Livemint, the investment in Strike Eco may create a framework for jointly developing solar power generation projects and renewable infrastructure opportunities in the coming years. The association will focus on expanding into government, institutional and international renewable energy opportunities as part of their long-term growth plans, with both companies exploring opportunities across solar parks, captive and open access projects, carbon credit advisory, ESG and sustainability consulting, energy storage and green hydrogen. This equity investment marks the company's strategic pivot into the renewable energy sector while maintaining its core business in stainless steel and mild steel long products.
