HLE Glascoat shares will be in focus in the trading session tomorrow (Wednesday) after the company’s arm, Kinam Engineering, bagged a heat exchanger order worth up to $48 million from a North American energy storage firm.
In an exchange filing issued on Tuesday, November 10, Kinam Engineering Industries Pvt Ltd, a subsidiary of HLE Glascoat, has secured an export order worth about $42-48 million (₹392-₹448 crore) from a leading international player in the energy storage sector.
SCOPE OF ORDER
The order is for the design, engineering, manufacturing, testing and supply of specialised shell and tube heat exchangers and associated process equipment. The equipment will be used in a large-scale energy storage project in North America.
The order will be executed progressively through November 2028, the company added.
The Gujarat-based company said that the customer is a North American company that develops large-scale, long-duration energy storage projects. Its name has not been disclosed.
It was in September that HLE Glascoat, a provider of chemical technology solutions, announced that it would acquire a 70% controlling stake in Kinam Engineering Industries’ Heat Exchanger business. The strategic transaction will be completed in two phases.
The first phase is expected to conclude by the second quarter of FY2024 and involves an all-cash payment of ₹79.97 crore for a 35.56% stake. The remaining 34.44% stake will be acquired through a scheme of arrangement under which Kinam’s holding company will be amalgamated into HLE Glascoat.
Kinam Engineering Industries has a strong international presence, exporting its products to destinations including Germany, the Netherlands, Israel, and countries across South America.
STOCK PERFORMANCE
The shares closed with gains of 0.43% on Monday’s trade. The shares have seen a decline of 4.58% in trading this year so far. The stock price now stands at ₹421.30, the stock price now stands 30.363% decline from the 52-week high of ₹605.00 per share.
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