Linde India’s shares hit a new lifetime high on Wednesday after the company announced winning a Letter of Acceptance (LoA) from Indian Oil Corporation Ltd (IOCL) for setting up an Air Separation Unit (ASU) in Panipat. 

At 03:25 pm, the Linde India scrip was trading at Rs 5,929.80, 2.85% higher from its previous closing price on the National Stock Exchange (NSE). The stock surged nearly 7% during the intraday session, reaching a record high of Rs 6,165. 

The company said in an exchange filing that the LoA is regarding a job-work contract for establishing of Air Separation Unit (ASU) on a site licensed by IOCL within its Panipat Refinery Complex for the production of Instrument Air, Plant Air and Cryogenic Nitrogen and its subsequent supply to IOCL Panipat Refinery Expansion Project (P25).

The company expects to fund the capital expenditure from its own funds/internal accruals. Linde India will enter into requisite Agreements with IOCL for operating and maintaining the facility for 20 years upon completion of the construction and the performance test of the ASU. 

Linde India is one of the largest global industrial gas and engineering players. It primarily constructs cryogenic and non-cryogenic air separation plants backed by more than 75 years of experience. It has a diverse product portfolio comprising industrial, medical, compressed and special gases. 

The company also received investment approval for a new ASU in Ludhiana, Punjab, for growth into the under-served secondary steel, met fab & pharma market expected to get commercialised within FY 2023, Linde India said in its annual report.