ACME Solar Holdings Ltd. saw its shares climb by almost 4% on Thursday following an announcement that its wholly owned subsidiary, ACME Marigold Urja Private Limited, has signed a significant power purchase agreement (PPA) with NTPC Ltd.
The agreement pertains to a 400 MW firm and dispatchable renewable energy (FDRE) project, developed under NTPC's FDRE Tranche 01. The terms of the PPA specify a tariff of Rs 4.37 per unit for the electricity generated. Supply from the project is scheduled to begin on June 30, 2028, and the agreement will remain in effect for 25 years from that date.
Project Details and Market Reaction
The disclosure, made in a regulatory filing under Regulation 30 of the Securities and Exchange Board of India's listing regulations, confirms the project's contracted capacity but does not specify a total rupee value for the contract. ACME Solar clarified that the agreement is a domestic project and does not fall under related-party transactions, with no interest from the promoter group in NTPC related to this contract.
Following the news, ACME Solar shares touched a high of Rs 427.15, marking a 3.97% increase from their previous close of Rs 410.85. The stock opened the session at Rs 416.65, demonstrating positive investor sentiment towards the new renewable energy venture.