World · India Bureau
Thermax shares surge on renewable energy subsidiary divestment plans
Thermax Limited's stock climbed 7% following reports that the engineering firm plans to sell a majority stake in its renewable energy arm, First Energy, valued at approximately ₹3,000 crore.
LSN India ·
Shares of Thermax Limited rallied on the Mumbai bourse after market reports suggested the company is exploring a stake sale in First Energy, its renewable energy subsidiary. The proposed divestment would involve selling over 51% of the unit, marking a significant strategic shift for the diversified industrial group.
The renewable energy arm, First Energy, has been positioned as a growth driver for Thermax as India accelerates its clean energy transition. The reported enterprise valuation of ₹3,000 crore reflects investor appetite for renewable energy assets amid the country's push to expand its renewable capacity.
Though Thermax has not made an official announcement, the stake sale aligns with broader trends among Indian conglomerates to monetize their energy transition businesses. Such divestitures typically allow parent companies to unlock capital for reinvestment in core operations or expansion.
The exact timeline and potential buyers for the First Energy stake remain unclear. Investors are keenly awaiting official confirmation from Thermax management regarding the transaction's structure and timeline.