Shares of industrial biotech company Praj Industries Ltd. soared more than 8 percent on Friday after the company announced forming an equal partnership joint venture with Indian Oil Corporation for developing biofuels production facilities in India.
The joint venture will cover biofuels production capacities for ethanol, sustainable aviation fuel (SAF), compressed biogas (CBG), biodiesel and bio-bitumen, according to an exchange filing by the company.
Praj Industries (Praj) and Indian Oil Corporation (IOC) in October 2021 had signed an agreement to set up a 50:50 JV for developing biofuels capacities.
The two companies on Thursday announced signing a term sheet to advance JV plans to strengthen biofuels production in India.
Indian Oil and Praj have collaborated in the past for the production of greener fuels. IOC’s advanced biofuels refinery at its Panipat complex is based on Praj’s 2G biofuel technology.
Praj’s Bio‐Mobility platform offers technology solutions globally to produce renewable transportation fuel. Its Bio‐Prism portfolio comprises technologies for the production of renewable chemicals and materials.
Shares of Praj Industries soared by more than 8 percent to hit a high of Rs 405.95. The stock is currently trading 7.4 percent higher at Rs 398.05. The stock is up 11.2 percent on a year-to-date basis. On the other hand, shares of Indian Oil are trading 0.6 percent higher at Rs 99.20, down from the 52-week high of Rs 101.25.
