Kalpataru Power share price plunged 10% in past few sessions; Critical info for investors here

Kalpataru Power share price: In what will come as a big disappointment for Kalpataru Power investors, the company's share price plunged as much as 10 pct recently. So, where do things stand and what should Kalpataru Power investors know? The board of directors of Kalpataru Power at its meeting held on December 08, 2020, authorised capital expenditure of approximately Rs 207 cr towards purchase of land and will further incur approximately Rs 170 cr towards construction, municipal charges, taxes and for other approvals for development & construction of corporate office of about 179000 sq. ft. of leasable area near its existing office at Santacruz, Mumbai.

Kalpataru Power: Due Process

Given the size of the transaction, it required no shareholder approval. Kalpataru Power has ensured due process and fairness through a valuation (with two international valuation experts), audit committee review and board review before approving the same. While approving the proposed transaction, Kalpataru Power's board of directors ensured a rigorous process of obtaining valuation reports, reviewing the material terms, pricing fairness, and multiple factors to ensure that the interests of the Company were kept paramount.

While the above mentioned proposed transaction by Kalpataru Power was in the best interest of the company, to be undertaken in its ordinary course of business and at arm's length terms, wherein the land to be purchased was from a related party of the Company.

Kalpataru Power: Outlook 

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The current market cap of Kalpataru Power is Rs 4830 cr. The 52 week low on the company is Rs 170 while the 52 week high is Rs 477. Many Broking houses believe that this power transmission and equipment company will only do well from here on.  The Power Sector has been in focus and will continue to remain so because all industries are highly dependent on power for functioning their business activities. Power sector will see strong growth in the coming years as India becomes the hub for many global industries.