In a strategic move toward sustainability, Styrenix Performance Materials has signed definitive agreements to acquire a 36.13% equity stake in Clean Max Jasper Pvt. Ltd. (CMJPL), a renewable energy firm engaged in wind-solar hybrid power generation and transmission. This acquisition aligns with regulatory requirements for captive power consumption and aims to meet Styrenix’s green energy needs while optimizing energy costs.
Why This Acquisition Matters
As part of this deal, Styrenix will initially purchase 3,613 equity shares at face value for INR 36,130, securing a significant stake in CMJPL. Over time, the company has committed to investing up to INR 7.66 crore through rights issues or other financial instruments as needed. The acquisition is expected to be completed within three months.
CMJPL will supply approximately 7.3 MVA of renewable energy to Styrenix’s plants in Gujarat (Moxi and Katol) under a captive open access model. This shift to green energy will lower operational costs while reinforcing the company’s commitment to environmental sustainability—a growing priority for modern businesses.
Should Investors Buy Styrenix Performance Materials?
While this move strengthens Styrenix’s energy efficiency, the stock’s valuation suggests caution for investors. According to InvestingPro, Styrenix’s fair value is estimated at INR 2,378 per share, indicating a 9.6% downside from the current market price (INR 2,630).
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Despite its sustainability push, the stock appears overvalued, suggesting a wait-and-watch approach for investors. Those looking to assess stock valuations can use InvestingPro’s fair value feature, which applies multiple financial models to determine intrinsic worth.
While Styrenix’s investment in renewable energy aligns with long-term sustainability goals, its stock price may not currently offer the best entry point. Investors should leverage InvestingPro, especially its ongoing 45% discount offer to evaluate stock valuations before making investment decisions.
Read More: How InvestingPro’s ‘Ideas’ Can Transform Your Investing Strategy
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