Refex Renewables & Infrastructure Limited has announced the completion of its acquisition of a controlling stake in Vyzag Bio-Energy Fuel Private Limited (Vyzag Bio), effective from December 30, 2024. This marks an important step forward in Refex Renewables' efforts to expand its portfolio and strengthen its position within the renewable energy sector.

The acquisition, facilitated through Refex Sustainability Solutions Limited (RSSL), a wholly-owned subsidiary of Refex Renewables, involved the purchase of 51.03% equity stake from the existing promoters and a fresh equity infusion. As a result, Vyzag Bio has now become a subsidiary of RSSL and a step-down subsidiary of Refex Renewables.

Vyzag Bio-Energy Fuel: A Key Player in CBG Production

Vyzag Bio-Energy Fuel operates a Compressed Bio-Gas (CBG) plant in Visakhapatnam, India, which produces biogas derived from segregated municipal waste. The plant has a capacity to produce 850 kg of CBG per day, making it a significant contributor to the green fuel production in India. This plant uses municipal solid waste to generate bio-gas, which is a key aspect of sustainable energy solutions.

The acquisition is a strategic move for Refex Renewables, as it seeks to diversify into the CBG business and enter new markets. The renewable energy sector continues to grow, and Refex aims to capitalize on the increasing demand for green fuels as part of its broader focus on eco-friendly solutions.

Strategic Expansion in the Renewables Sector

The acquisition of Vyzag Bio-Energy Fuel strengthens Refex Renewables' position in the renewable energy market, particularly in the emerging Compressed Bio-Gas (CBG) segment. As the world moves towards more sustainable energy sources, the demand for CBG is increasing, making this acquisition a critical move in Refex Renewables’ strategic expansion.

The CBG plant at Vyzag Bio is located in Visakhapatnam, within the property of the Greater Visakhapatnam Municipal Corporation (GVMC). The plant's existing capacity is 30 tonnes per day (TPD), and the company is planning an expansion, increasing its input capacity to 100 TPD by adding an additional 70 TPD. This expansion will further solidify the company’s footprint in the CBG market.

Financials and Future Outlook

The acquisition deal involved an investment of approximately ₹2.90 Crores, which includes the cost of acquiring shares from the existing promoters as well as the capital infusion into Vyzag Bio. The new 51.02% equity stake in Vyzag Bio, which amounts to around 46.46 lakh shares, positions Refex Renewables to benefit from the growth of the compressed bio-gas market.

The acquisition also opens up opportunities for Refex Renewables to tap into new markets and further enhance its portfolio in the renewables sector. With increasing focus on eco-friendly energy solutions and the growth of the CBG sector, Refex Renewables is well-positioned to capitalize on the sustainability trend.

Conclusion: Strengthening the Path to Sustainability

This acquisition underscores Refex Renewables’ commitment to sustainability and eco-friendly business practices. By entering the Compressed Bio-Gas industry, the company is not only enhancing its renewable energy portfolio but also contributing to the reduction of the carbon footprint through cleaner, greener fuel solutions.

With the expansion of the Vyzag Bio plant, Refex Renewables is set to play an important role in India's growing bio-gas and green fuel market, aligning with the country’s push towards sustainable energy solutions.

The Upcoming IPOs in this week and coming weeks are Indo Farm, Technichem Organics, Leo Dry Fruits, Davin Sons, Fabtech Technologies and Standard Glass Lining.

The Current active IPO is Citichem India and Anya Polytech.

For more details on upcoming IPOs, you can visit our page at  and stay updated with the latest news on IPO updates on . Join our  for regular Stock Market Trading and Investment Calls by  - SEBI Registered Research Analyst &  for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in .Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance SaathiTop News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance SaathiTrading with CA Abhay Telegram ChannelCA