Gujarat Fluorochemicals Offloads Captive Power Plant to IGREL Mahidad for ₹200 Crore

Gujarat Fluorochemicals Limited (GFL) has approved the slump sale of its 57 MW captive power plant to its wholly-owned subsidiary, IGREL Mahidad. The sale was finalised for a lump sum consideration of ₹200 crore, according to the company’s exchange filing on December 26.

IGREL Mahidad is engaged in the generation, purchase, and transmission and distribution (T&D) of electricity from both conventional and non-conventional sources. As part of this transaction, GFL’s board has also sanctioned an investment of up to ₹40 crore to subscribe to equity shares of IGREL Mahidad in one or more tranches. The company stated that this infusion of funds would support IGREL Mahidad’s capital expenditure requirements.

On December 27, 2024, Gujarat Fluorochemicals share price surged 1.58%, reaching an intra-day high of ₹4,428.80 at 9:40 AM (IST). According to BSE data, the stock recorded a total traded volume of 329 shares, resulting in a turnover of ₹14.42 lakh.

Strategic Investment in Flurry Wind Energy

In another major move, GFL announced plans to invest up to ₹200 crore in Flurry Wind Energy Private Limited (FWEPL), a promoter-owned entity. This investment will secure a 26% stake in the company.

“The funds being infused in FWEPL are to support its capital expenditure requirements,” GFL stated. FWEPL is set to generate wind energy, which will be supplied to GFL’s facilities to meet their operational energy demands.

Power Purchase Agreements Finalised

GFL has signed power purchase agreements (PPAs) with both IGREL Mahidad and FWEPL. As per the agreements, GFL will procure electricity at ₹4 per unit based on the number of units generated.

Specifically, the company will purchase 107 MW of power from IGREL Mahidad and 350 MW from FWEPL. This initiative aligns with GFL’s strategy to ensure a reliable and cost-effective energy supply for its plants.

Focus on Future Growth and Sustainability

GFL’s recent decisions underline its focus on sustainable energy solutions and infrastructure development. The company’s latest actions also come in the wake of its successful fundraising of ₹1,000 crore for its subsidiary, GFCL EV, valued at ₹25,000 crore. This capital is earmarked to support the company’s capital expenditure needs for new business ventures.

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