Shares of micro-cap company Auri Grow India Ltd were locked in a 5% upper circuit during Wednesday's trading session, January 7, following a significant business announcement. The penny stock, trading below one rupee, saw heightened investor interest after the company revealed its strategic foray into the environmental, social, and governance (ESG) sector.
CarbonKrishi: A New AI-Powered Venture
In a filing submitted to the exchanges on January 6, Auri Grow India announced the launch of CarbonKrishi, an innovative platform powered by artificial intelligence. This initiative marks the company's official entry into the fast-growing carbon credit and sustainability market. The platform is designed to leverage advanced technology to create new revenue streams while supporting agricultural communities.
The company outlined that CarbonKrishi will utilize a combination of AI analytics, satellite imagery, and detailed crop and soil data to accurately estimate carbon impact at the individual farm level. This data-driven approach is intended to facilitate the generation of verifiable carbon credits from sustainable farming practices.
Projected Scale and Financial Impact
Auri Grow has set ambitious targets for its new platform. The company plans to onboard approximately 100,000 farmers onto the CarbonKrishi system. Based on its estimates, this initiative has the potential to generate carbon credits worth between ₹16 crore and ₹50 crore every year.
For Auri Grow itself, the financial upside could be substantial. Assuming a platform participation or commission share of 20% to 30%, the company anticipates generating annual revenues ranging from ₹3 crore to ₹10 crore solely from the carbon credit operations. However, the management has prudently noted in the filing that these figures are indicative and hinge on several variable factors.
Strategic Vision and Future Plans
Pratik Kumar Patel, Director of Auri Grow India Ltd, emphasized the transformative nature of this project. He stated that CarbonKrishi represents a pivotal shift for the company towards becoming a technology- and sustainability-driven agricultural platform. The core objective is to empower farmers by enabling them to earn incremental income through climate-positive practices, while simultaneously establishing a scalable and asset-light revenue model for Auri Grow.
Furthermore, the company's board has granted authorization to the management to explore various avenues for raising capital or making strategic investments. The options under consideration include a rights issue, a Qualified Institutions Placement (QIP), preferential allotment, or open-market transactions. Any final decision will be made after evaluating regulatory requirements, current market conditions, and shareholder interests.
Stock Performance and Market Reaction
The market reacted positively to the announcement. On Wednesday, the penny stock opened at its upper circuit price of ₹0.77, compared to its previous close of ₹0.74. This surge is part of a broader bullish trend for the stock, which has risen 5.48% over the last five trading sessions and delivered an impressive 26.23% return in the past month.
Auri Grow shares are traded on the National Stock Exchange (NSE). The stock recently touched a 52-week high of ₹1.25 on January 6, 2025, and a 52-week low of ₹0.45 on June 5, 2025. The launch of CarbonKrishi appears to be a key driver in its recent performance, attracting attention in the penny stock segment despite overall weak market sentiments.
Disclaimer: This news article is for informational purposes only. Readers are advised to consult with a certified investment advisor before making any financial decisions.
