Zodiac Energy’s stock fell 2% on January 31 following the announcement of a power purchase agreement (PPA) with Uttar Gujarat VIJ Company. The company’s shares were trading at ₹271.70, down ₹5.50, on the BSE.
The PPA, signed on January 28, 2024, involves the procurement of solar power on a long-term basis for the solarization of 11 KV Agricultural Feeders, totaling 5 MW.
These 5 MW PPAs are part of the total allotted capacity of 26.8 MW by UGVCL to Zodiac Energy Limited.
The order is expected to be executed within nine months from the date of the PPA signing. The board of directors is scheduled to meet on February 7 to consider and approve the unaudited financial results for the quarter and nine months ended December 31, 2023, along with other agenda items.
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Upcoming Board Meeting
Apart from the PPA news, the Zodiac Energy board of directors is set to convene on February 7, 2024. The agenda includes the review and approval of the unaudited financial results for the quarter and nine-month period ending December 31, 2023, among other key items. This meeting will likely generate further interest and potentially impact the company’s market performance in the near term.
Investor Sentiment and Future Outlook
As the dust settles on the initial market reaction to the PPA announcement, investors and market watchers will be keen to see how Zodiac Energy navigates this new venture. The company’s ability to deliver on its commitments under the PPA and the outcome of the upcoming board meeting will heavily influence investor sentiment and, by extension, the company’s stock performance.