Orient Green at 5% LC

Orient Green Power is in the spotlight today. The stock, which had closed yesterday at Rs.24.70, opened slightly higher at Rs.25.40 but soon went down to hit the 5% LC of the day at Rs.23.50. In fact its intraday at Rs.25.65 was close to its 5% UC of Rs.25.90.

The stock is in the news on unconfirmed news that Shriram Group is in talks with potential investors to sell its wind power company Orient Green Power for an enterprise value of Rs.3,000 crore. This too early in the day for really say that it will happen but the grapevine has it that the group is also including an unutilised land parcel of 2,000 acres.

The Shriram Group, through Shriram EPC, is currently the largest shareholder with a 49% stake.

This is a loss-making company with an installed operational capacity of 417 MW of wind generators. What really pushed it into losses was unpaid dues from state-owned electricity distribution companies in Tamil Nadu and Andhra Pradesh.