1:2 Bonus Share: Solar Power Company Bags Order of 300 MWAC Ground Mounted Solar PV plant from Coal India Ltd
The stock gave multibagger returns of 101 per cent in just 1 year and a whopping 10,550 per cent in 5 years.
On Friday, shares of KPI Green Energy Ltd plunged 0.52 per cent to Rs 788.85 per share from its previous closing of Rs 793 per share with an intraday high of Rs 798.35 per share and an intraday low of Rs 778.10 per share.
KPI Green Energy Limited is pleased to announce that the Company has successfully secured a significant contract from Coal India Limited (CIL). The Company was awarded the Letter of Award (LOA) for the development of a 300 MWAC Ground Mounted Solar PV plant at GIPCL's Solar Park, Khavda, Gujarat, along with a 5-year Operation and Maintenance (O&M) contract.
This substantial order from a central government entity is a testament to KPI Green Energy's strong track record, technical expertise, and commitment to sustainable energy solutions. The project aligns perfectly with the Company's ambitious goal of achieving 10 GW of renewable energy capacity by 2030. This milestone marks a significant step forward for KPI Green Energy, solidifying its position as a leading player in India's renewable energy sector.
Additionally, the company considered and recommended the issuance of bonus Equity Shares in a 1:2 ratio. This means that for every 2 existing equity shares held by shareholders on the record date, they would receive 1 additional bonus equity share, each valued at Rs 5. The pre-bonus paid-up share capital was Rs. 65,63,02,015, divided into 13,12,60,403 equity shares. After the bonus issue, the post-bonus paid-up share capital increased to Rs. 98,44,53,025, with a total of 19,68,90,605 equity shares.
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KPI Green Energy Ltd, established in 2008 as part of the KP Group, is a renewable energy leader specializing in solar power generation. They operate under the "Solarism" brand, offering a comprehensive solution for both Independent Power Producers (IPPs) and Captive Power Producers (CPPs). Their services include developing, building, owning, managing, and maintaining solar power plants across Gujarat, with a current installed capacity exceeding 445 MW. They cater to IPPs by directly generating and selling solar electricity, while also providing Engineering, Procurement, and Construction (EPC) services to CPP clients who wish to set up their solar power facilities.
According to Quarterly Results, the net sales increased by 67 per cent to Rs 359.68 crore and net profit increased by 101 per cent to Rs 69.84 crore in Q2FY25 compared to Q2FY24. In its half-yearly results, the net sales increased by 75 per cent to Rs 707.69 crore and net profit increased by 100 per cent to Rs 135.95 crore in H1FY25 compared to H1FY24.
The company's shares have an ROE of 30 per cent and an ROCE of 22 per cent. In September 2024, FIIs bought a 3.90 per cent stake and DIIs bought a 1.17 per cent stake and increased their stake to 9.95 per cent and 1.50 per cent respectively, compared to 6.05 per cent and 0.33 per cent respectively in June 2024. The company has a market cap of over Rs 10,000 crore with a strong order book. The stock gave multibagger returns of 101 per cent in just 1 year and a whopping 10,550 per cent in 5 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.