Pasupati Acrylon Limited , a key player in the Indian petrochemical industry, has announced a significant development that may boost its revenue substantially. The company has been granted an order to supply 32,320 kilolitres of ethanol worth ₹215.00 crore for the Ethanol Supply Year (ESY) 2025-26.

Contract Details

The contract involves supplying ethanol to three major oil marketing companies (OMCs) in India:

1. Bharat Petroleum Corporation Limited (BPCL)
2. Indian Oil Corporation Limited (IOCL)
3. Hindustan Petroleum Corporation Limited (HPCL)

This allocation is part of the Ethanol Blended Petrol Programme (EBPP), a government initiative aimed at reducing the country's dependence on imported fossil fuels and promoting cleaner energy alternatives.

Financial Impact

The secured contract is expected to have a significant impact on Pasupati Acrylon's financial performance:

The anticipated 40% boost in annual revenue underscores the importance of this contract for the company's growth trajectory.

Execution Timeline

According to the company's filing with the stock exchanges, the ethanol supply is scheduled for the Ethanol Supply Year 2025-26. This timeframe allows Pasupati Acrylon to plan and prepare for the increased production and supply logistics.

Strategic Implications

This contract represents a strategic win for Pasupati Acrylon, potentially strengthening its position in the ethanol market. The company's participation and success in the bidding process for the EBPP demonstrate its capability to meet the requirements of major oil marketing companies.

Conclusion

The ₹215.00 crore ethanol supply contract marks a significant milestone for Pasupati Acrylon. As the company prepares to fulfill this substantial order, investors and market watchers may closely monitor how this development translates into financial performance and market valuation in the coming years.

Pasupati Acrylons Limited (PAL) has announced a significant corporate restructuring within its promoter group, as approved by the National Company Law Tribunal (NCLT), New Delhi Bench. The NCLT has sanctioned a scheme of amalgamation that will consolidate several promoter group companies into Arihant Exports Private Limited (AEPL).

Merger Details

The approved scheme involves the merger of the following entities:

• MVA Finance Private Limited (MFPL)
• Inder Overseas Private Limited (IOPL)
• Nityanand Exports and Consultants Company Private Limited (NECCPL)
• VMA Finance Private Limited

These companies will be amalgamated into Arihant Exports Private Limited, which will serve as the transferee company.

Impact on Shareholding Structure

As a result of this merger, the shareholding structure of Pasupati Acrylon's promoter group will undergo inter-se changes. The shares of PAL currently held by MFPL, IOPL, and NECCPL will be consolidated under AEPL. Consequently, MFPL, IOPL, and NECCPL will cease to exist as separate entities.

Key Points

• The aggregate holding of the promoter and promoter group in Pasupati Acrylon Limited will remain unchanged at 65.87%.
• Pasupati Acrylon Limited itself is not a direct party to the amalgamation scheme.

Regulatory Compliance

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Pasupati Acrylon Limited has duly informed the stock exchanges about this development. The company received communication from the involved promoter group entities regarding the NCLT's approval of the scheme.

This corporate restructuring within the promoter group is expected to streamline the ownership structure of Pasupati Acrylon Limited, potentially leading to more efficient management of promoter holdings. However, it's important to note that this change does not affect the overall promoter stake in the company, which remains steady at 65.87%.