Shares of Varroc Engineering hit a 52-week high of Rs 519.75 on 4 October after Varroc Polymers, the company’s subsidiary, entered into a power purchase agreement to source power from AMP Energy C&I Six and AMP Energy C&I Five (SPVs).

These SPVs will establish renewable energy power plants with a captive capacity of 21 megawatt peak in Tamil Nadu and a 30 megawatt peak capacity plant in Karnataka.

In its exchange filing, the company said, “This will enable Varroc Polymers Limited to source solar power from the said SPVs for its manufacturing plants located in the States of Karnataka and Tamil Nadu.”

Varroc Polymer is also in the process of acquiring a 3% stake in AMP Energy C&I Five for Rs 80 lakh and a 1% stake in AMP Energy C&I Six for Rs 40 lakh.

The shares of Varroc Engineering have gained almost 94% in the last six months and almost doubled investors’ gains.

On 30 June, the promoters maintained a 75% stake in the company, FIIs (foreign institutional investors) held 5.1%, DIIs (domestic institutional investors) held 12.2%, and the public held a 7.7% stake in the company.

At 3:30 pm, Varroc Engineering shares shed all their initial gains and closed at Rs 493 or 2.35% below its previous close on NSE.