Praj Industries Surges After Company Signs Agreement With US-Based Gevo

Praj share price surged nearly 8 per cent in intraday trade on Wednesday. On the BSE, the Praj Industries stock surged as much as 10.63 per cent to touch Rs 152.50 during the session, compared to its previous close of Rs 137.85. Pune-based Praj Industries informed the stock exchanges post-market hours on Tuesday that it had signed a construction agreement with US-based Gevo. On the National Stock Exchange (NSE), the stock rose as much as 10.40 per cent to Rs 152.80, compared to the previous close of Rs 138.40.

As part of the construction licence agreement, Praj Industries will provide engineering, procurement and construction (EPC) services to third parties using a process design package developed by it.

Praj Industries also signed a memorandum of understanding (MOU) with Gevo Inc to commercialize the US-based company's renewable hydrocarbons products. 

Commenting on the development, Pramod Chaudhari, executive chairman of Praj Industries, said: "The addition of lsobutanol technology to Praj's diverse product portfolio is a step in our endeavour towards smart bio-refineries that facilitate sustainable decarbonisation."

"This solution can be offered both as a 'bolt-on' to an existing ethanol plant or as a Greenfield plant. We value our partnership with Gevo and believe that this technology will help the aviation industry fulfil their obligation of Green House Gas (GHG) reduction."

At 2:50 pm, Praj Industries shares traded 8.45 per cent higher at Rs 149.50 apiece on the BSE, outperforming the broader markets which were down 0.66 per cent.

Praj Industries trading volumes spiked as 6.72 lakh shares changed hands on the BSE compared with an average of 2.08 lakh shares traded daily in the past two weeks.