Shares of Linde India hit a new high of Rs 6,075.05, as they gained 5 per cent on the BSE in Wednesday’s intra-day trade after winning Letter of Acceptance’ from Indian Oil Corporation (IOCL) for setting-up of Air Separation Unit (ASU) within its Panipat Refinery Complex. Linde India expects to fund the capital expenditure from its own funds/internal accruals.
“The company has been awarded a ‘Letter of Acceptance’ dated 22 August 2023 by Indian Oil Corporation Limited (IOCL) in connection with the job-work contract for setting-up of Air Separation Unit (ASU) on a site licensed by IOCL within its Panipat Refinery Complex for production and supply of Instrument Air, Plant Air and Cryogenic Nitrogen to IOCL Panipat Refinery Expansion Project (P25),” Linde India said in an exchange filing.
On completion of the construction and the performance test of the aforesaid ASU, Linde India will enter into requisite Agreements with IOCL for operating and maintaining the facility for a period of 20 years from the first delivery date, the company said.
Meanwhile, thus far in the calendar year 2023, the stock price of Linde India has zoomed 70 per cent, as compared to 6.6 per cent rise in the S&P BSE Sensex.
The company is primarily engaged in manufacture of industrial and medical gases and construction of cryogenic and non-cryogenic air separation plants. Linde India is one of the largest players in the domestic industrial gas industry. Its strong market position is backed by presence of more than 75 years and diverse product portfolio, comprising industrial, medical, compressed and special gases. Moreover, the company has healthy brand equity and the ability to provide end-to-end solutions to customers in the tonnage segment.
Post the investment approval for a new ASU in Dahej last year, the company also received an investment approval for a new ASU in Ludhiana, Punjab for growth into the under-served secondary steel, metfab & pharma market. Both investments (approx. 500 tpd) are expected to get commercialized within FY 2023, Linde India said in its annual report.
Leveraging its strong footprint in the steel sector, the company has won orders for setting up ASUs at ESL Steel Limited, Bokaro and Jindal Stainless Limited, Kalinganagar. This is further expected to cement the company’s position in East India, taken together (approx. 2,200 tpd). For strengthening presence in the semiconductor segment, the Company is setting up a high purity Nitrous Oxide facility at its existing Hyderabad plant, it said.