Praj Industries Shares Rise on GBA Launch

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Shares of Praj Industries Limited rose 15% to hit a 52-week high of Rs 598 on September 11, 2023, on expectations that the company will benefit from the launch of the Global Biofuel Alliance (GBA).

The GBA is a public-private partnership launched by the Government of India on the sidelines of the G20 Summit. The alliance aims to accelerate the transition to sustainable biofuels and reduce the world’s dependence on traditional fossil fuels.

Biofuels are renewable energy fuels derived from biomass like crop stubble, plant waste and municipal solid waste. They are a cleaner and more sustainable alternative to fossil fuels.

The GBA is expected to lead to increased investment in the biofuels sector in India. This would create new jobs and boost the Indian economy.

Praj Industries is a leading provider of ethanol production technologies and services. The company has a 60-65% market share in developing ethanol plants in India. This gives it a strong position to benefit from the GBA.

The company also has a proven track record in the ethanol industry. It has successfully developed and commissioned ethanol plants in India and other countries.

Praj Industries is well-connected with the government and other stakeholders in the biofuels sector. This will help it to secure contracts and partnerships under the GBA.

The rise in Praj Industries shares is a positive sign for the company. It reflects the confidence of investors in the company’s future prospects.

The company is expected to continue to grow in the coming years, driven by the increasing demand for biofuels in India and the world.

In addition to the factors mentioned above, the rise in Praj Industries shares could also be attributed to the following:

  • The government’s renewed commitment to the 20% ethanol blending program by 2025.
  • The increasing availability of feedstock for ethanol production, such as crop stubble and sugarcane juice.
  • The declining cost of ethanol production technologies.

Overall, the launch of the GBA is a positive development for the biofuels industry in India. It is expected to create new opportunities for companies like Praj Industries.


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