This is a company promoted by Shriram Group and is into the fancied field of renewable energy, particularly wind and biomass power.
It has provided a coal gasifier (converts coal to methane) in technology tie-up with Envirotherm GmbH of Germany for Jindal Steel`s plant in Orissa. Shriram EPC expects that with the Jindal plant as a reference, and with the technology tie-up with Envirotherm , it should get more orders.
The wind turbine generator manufacturing unit, a joint venture with Leitwind, Netherlands, has begun manufacturing 1.5 MW wind turbines at Gummidipoondi,Chennai.This is in addition to the 250 kw machines that the company already sells. The unit has a capacity to manufacture 200 turbines a year. At a cost of Rs 10 crore a machine, 1.5 MW wind turbine business would generate revenues of over Rs 2,000 crore at full capacity expected in FY 2010-11. In FY 2009-10, the unit will produce 80 machines and nearly half its production would be exported to Europe.
Orient Green Power, a joint venture of Shriram EPC with Bessemer Ventures, has over 60 MW of wind turbine generators and 16 MW of biomass-based power capacity.
Over 240 MW of biomass-based power plants are in the pipeline in Tamil Nadu, Andhra Pradesh, Maharashtra, Punjab and Rajasthan. Ten bio-mass power projects have been completed and more than 20 projects totalling over 100 MW are under execution. This joint venture now has over Rs 900 crore worth of orders.
In 2009-10, over 50 per cent of the company`s revenues would be from the wind energy business, 10-15 per cent from biomass power generation projects and the balance from Engineering, Procurement and Construction (EPC)contracts.
The only problem is the low floating stock of the company - 42.58% is held by promoters, 52.03% is held by FIIs and mutual funds leaving only 5.4% with common public. Hence, the volumes are low in BSE and NSE on a daily basis .
The share price has the habit of jumping up by 60% and taking rest for almost a month - from Rs. 84 to Rs.135 and then from Rs.126 to Rs.206. The share price has been taking rest for the last three weeks.
The next upmove, when it comes, could be for another 60%.
As a strong believer in alternate energy sources, I am a fan of this scrip.
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The only problem is the low floating stock of the company - 42.58% is held by promoters, 52.03% is held by FIIs and mutual funds leaving only 5.4% with common public
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The shareholding pattern from NSE is
Shareholding of Promoter Group 42.58
Public shareholding 57.42
Institutions 11.75
Mutual Funds/ UTI - 4.92
Foreign Institutional
Investors - 6.83
Non-institutions 45.67
FII hold only 6.83 & MF - 4.92. Yes there has been a swing from 115 to 270 all of a sudden for the reasons best known to you , I suppose.
| NIFTY 
