Yesterday, after market hours, Punj Lloyd announced that Punj Lloyd Infrastructure Limited (“PLIL”), a wholly owned subsidiary of the Company has executed definitive agreements with India Power Green Utility. This to co-develop 30 MW of solar assets in Uttarakhand. Each of these  will have a 10 MW capacity and it was won by PLIL under the tarrif based competitive bidding process in October 2015.

This is to be executed by its Wholly Owned Subsidiaries (WOS) viz. PL Surya Vidyut Limited, PL Sunrays Power Limited, and PL Solar Renewable Limited.

As per the transaction, PLIL will divest 49% of its shareholding in its three subsidiaries viz. PL Surya Vidyut Limited, PL Sunrays Power Limited and PL Solar Renewable Limited. The SPV’s have signed 25 years power purchase agreements with Uttarakhand Power Corporation Limited. The Company shall be responsible for the entire engineering, procurement and commissioning of the above projects.

The transaction is expected to be completed once customary closing conditions and approvals are obtained. Greenstone Energy Advisors is acting as the exclusive financial advisor to PLIL for the transaction.

The market is thrilled with this news and the stock price spurted up to Rs.19.75 and remains some 2.5% up.