September 14, 14:00Aaj Tak

Indian firm to acquire 73-year-old African company for 13,000 crore rupees; stock impact expected

Although the stock market is closed on Monday, attention will be focused on Solar Industries' shares on Tuesday when trading resumes on Sensex-Nifty. This is due to a major deal in which the company plans to acquire a South African firm. The transaction is valued at approximately 13,000 crore rupees, and its impact may be reflected in the company's share price.

Solar Industries has a significant presence in the domestic market. This Indian company manufactures industrial explosives for the mining and infrastructure sectors, as well as supplies products related to the defense sector. Information about the new deal was published by Solar Industries on Monday. According to the announcement, the parent company, Solar SA Investments Proprietary Limited, intends to acquire all indebted shares of Omnia Holdings Limited, a South African company specializing in industrial explosives and fertilizers, pending necessary regulatory approvals.

Solar Industries specified that the acquisition of Omnia will be made entirely in cash for approximately 1.355 billion US dollars (equivalent to about 12,951 crore rupees).

Omnia Holdings Limited is headquartered in South Africa and is listed on the Johannesburg Stock Exchange (JSE). Omnia's operations began 73 years ago. The company possesses specializations and solutions in the mining and agricultural sectors. Omnia operates in 23 countries worldwide, providing services through more than 70 centers in key international markets, including Southern and West Africa, Australia, the United States of America, Canada, Brazil, and Indonesia.

In the last fiscal year, Omnia's revenue was approximately 1.41 billion US dollars (about 13,307 crore rupees). Meanwhile, Solar Industries' net profit in the first quarter of the current fiscal year increased by 93%, reaching 653 crore rupees.

Generally, when any company enters into a major deal or related news emerges, it often leads to changes in its stock value. Consequently, Solar Industries' shares involved in the 12,951 crore rupee deal are under close scrutiny, and it is expected that some change will occur on Tuesday when the stock market opens.

Previously, on Friday when the Solar Industries stock market closed, the price was 22,350 rupees. During intraday trading, this asset started moving from 22,300 rupees, rising to 22,500 rupees. The current market capitalization of this company is 2.02 lakh crore rupees, and the five-year price high reached 22,625 rupees.

Solar Industries stock is listed among the country's expensive stocks and provides consistent returns to its investors. This is evidenced by the return rate achieved by investors who invested in Solar Industries Shares. Over the past five years, this asset has grown by 1029%, and the stock price has increased from 1,979 rupees to 22,350 rupees. Furthermore, there has been strong growth in the stock price over the last six months by 59%, and in one month, it provided investors with a return of 12%.

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www.aajtak.inSeptember 3, 13:28

Experts recommend buying Wellspun Corp shares, forecasting growth up to 3200 rupees

Amid stock market volatility, one stock has significantly enriched investors, increasing their funds by more than threefold in a short period. This concerns Wellspun Corp, which demonstrated sharp growth immediately after the market opened on September 3 and reached an all-time high.

Meanwhile, brokerage firm Jefferies issued a recommendation to buy this stock, assigning it a 'Buy' rating and setting a target price of 3250 rupees. This suggests that from the closing price of 2524 rupees on September 2, the stock could rise by approximately 29 percent.

The brokerage firm notes that spending on oil and gas infrastructure in America and the Middle East is in a phase of multi-year growth, and Wellspun can benefit as the company is involved in production in both sectors. Jefferies expects the company's volume to grow at a Compound Annual Growth Rate (CAGR) of 17 percent between FY26 and FY29, with EBITDA and EPS reaching 32–33 percent.

Wellspun Corp is increasing its production capacity by 50 percent in America and Saudi Arabia, which will support the company's revenue growth. Furthermore, the share of foreign business with higher margins in the company's total revenue is increasing. Orders for the company amount to 42,100 million rupees, which is approximately 2.5 times the company's revenue for FY26.

The broker states that the company's net cash position was 1400 million rupees at the end of fiscal year 2026, and it is expected to reach 3900 million rupees by fiscal year 2029. In its report, Jefferies also indicated that the company's Return on Equity (RoE) was 21 percent during FY24–26 and could reach 22–23 percent in the future.

In the last month, Wellspun Corp has grown by 54 percent, and over six months, it has tripled investors' funds, showing a return of 233 percent. Over the year, this stock has shown a growth of 210 percent.

iol.co.zaAugust 31, 17:19

Cape Town signs R8 billion agreements to purchase solar energy to reduce dependence on Eskom

The city of Cape Town has signed two long-term power purchase agreements that will allow it to acquire 70 MW of solar energy from independent producers in the Atlantic and Philippi areas. The city stated that the terms of these contracts will ensure electricity at rates lower than the current prices set by Eskom.

The Cape Town administration announced the signing of the first power purchase agreements with private solar energy producers. These agreements provide for the supply of 70 MW of solar capacity to the city from facilities in Atlantic and Philippi over the next twenty years.

According to city representatives, these deals will help reduce dependence on Eskom and lead to savings of between 19% and 21% compared to current Eskom tariffs.

Mayor emphasized the need to reduce the burden on residents

At a press conference on Monday, Mayor Geordin Hill-Lewis noted that these agreements are an important step towards providing residents with more affordable and reliable electricity. Geordin Hill stated that families cannot indefinitely bear the rising costs from Eskom, so they are working to eliminate expensive Eskom energy and make electricity more acceptable for Cape Town residents.

He added that he was pleased to sign the first two agreements with solar power plants in Cape Town, which is unprecedented for any South African city, and that there are plans to acquire up to 700 MW of independent capacity in the long term.

The two signed agreements concern 30 MW from the JEMPEC solar power plant in Atlantic and 40 MW from the Make A Difference LLC solar power plant in Philippi. Over the entire 20-year period, the city expects to purchase electricity worth approximately R8 billion.

Use of the Consumer Price Index will ensure tariff stability

The agreements also stipulate linking price increases to the Consumer Price Index (CPI), instead of depending on future price hikes by Eskom. Alderman Xanthea Limburg, a member of the Majority Committee on Energy, noted that these contracts will also help avoid emissions of nearly two million tons of carbon, allowing the City to receive carbon credits that can be sold on the open market to finance further infrastructure projects.

Previously, Cape Town had already received R36 million in carbon credits through municipal waste recycling initiatives that reduce gas emissions in landfills.