New project powers Suryachakra Power

New project powers Suryachakra Power

Suryachakra Power Corporation gained 4.94% to Rs 32.95 at 12:25 IST on BSE, after the company said it has entered memorandum of understanding with Government of Chattisgarh, for setting up of a 270 megawatt thermal power project in Chattisgarh.

The company made this announcement during trading hours today, 4 February 2008.

Meanwhile, BSE Sensex was up 589.57 points or 3.23% to 18,832.15, as Asian stocks surged with sentiment boosted by Microsoft Corp's bid for Yahoo Inc and following China's buy of a large stake in takeover target Rio Tinto.

On BSE, 45,122 shares were traded in the counter. The scrip had an average daily volume of 11.75 lakh shares in the past one quarter.

The stock hit a high of Rs 32.95 and a low of Rs 32.50 so far during the day. The stock had a 52-week high of Rs 59.25 on 8 January 2008 and a 52-week low of Rs 16.50 on 14 August 2007.

The small-cap scrip had underperformed the market over the past one month till 1 February 2008, declining 38.73% compared to the Sensex’s decline of 10.33%. It had outperformed the market in the past one quarter, gaining 27.64% compared to Sensex’s decline of 8.68%.

The company’s current equity is Rs 76.63 crore. Face value per share is Rs 10.

The current price of Rs 32.95 discounts its Q2 September 2007 annualized EPS of Rs 0.82, by a PE multiple of 41.18.

The estimated investment for setting up this project is Rs 1,100 crore.

On 21 November 2007, Suryachakra Power Corporation (SPC) said it plans to raise funds by issuing foreign currency convertible bonds (FCCBs) and/or convertible warrants to promoters/promoter group on preferential basis.

On 24 October 2007, SPC entered into memorandum of understanding with China Guodian Corporation (CGC) for the development of a proposed 1200 megawatt (MW) IPP coal based power project.

SPC’s net profit rose 315.8% to Rs 1.58 crore on 6.5% growth in net sales to Rs 24.42 crore in Q2 September 2007 over Q2 September 2006.

Suryachakra Power Corporation is engaged in the generation of power.