Mumbai, June 26 -- MSP Steel and Power has surged after it signed a long-term power purchase agreement with Elevate Solar Energy to procure solar power and increase renewable energy consumption. The company hit an upper circuit of five per cent at Rs 44.22 following the announcement. Under the PPA MSP Steel and Power will procure power from a contracted solar capacity of 10 MWp (DC) at a tariff of Rs three point one seven per unit for a period of 25 years from the date of execution.
As part of the arrangement the company will acquire a 26 per cent equity stake in Elevate Solar Energy corresponding to its contracted energy requirement, subject to terms of a shareholders' agreement to be executed later. Elevate Solar Energy is developing a solar power project in Chhattisgarh's Baloda Bazar district with installed capacity of 70 MWp (DC) and 50 MW (AC). The developer's larger project scope underlines the long-term nature of the supply arrangement.
MSP Steel and Power is engaged in manufacturing and trading of iron and steel products, power generation, manufacturing and sale of cement clinker products and trading of industrial gases. The company reported consolidated net profit of Rs 851.9 mn in the fourth quarter of FY26 compared with a net loss of Rs 338.2 mn in the fourth quarter of FY25. Revenue from operations increased seven point four per cent year on year to Rs 8.16 bn in the quarter.
Market reaction reflected investor appetite for renewable initiatives as the stock moved to the upper circuit on the day of the announcement. The equity investment linked to the contracted requirement will align the company's renewable procurement with its operational needs, the release indicated. The PPA and stake acquisition create a longer-term linkage between offtaker and developer and are intended to support more predictable energy costs for the company.
Published by HT Digital Content Services with permission from Construction World.