LIC-backed multibagger penny stock under Rs 25 - Could it be the next Suzlon Energy? Board announces rights issue for business expansion; target for 1 GW capacity!
The stock gave 81.6 per cent returns from its 52-week low of Rs 12.06 per share and gave multibagger returns of 590 per cent in 3 years.
India's renewable energy sector is surging, backed by government push for 500 GW capacity by 2030 and falling tech costs. Companies like Sulon Energy, Tata Power, and Adani Green are leading, attracting big investments. While grid issues persist, the sector's future is bright.
The renewable energy sector stock has a rising star ready to shine as brightly as Suzlon Energy Ltd. The stock name is Orient Green Power Company Ltd.
Orient Green Power Company Limited is an independent producer of renewable power, it is engaged in developing, owning, and operating a diversified portfolio of wind energy power plants. The company currently have 421 MW capacity (incl. overseas capacity). The company's board approved a plan to expand its renewable energy capacity by 1 GW (1000 MW), based on an information memorandum prepared by a consultant-appointed firm. The managing director and CFO are authorized to execute the expansion plan.
Suzlon, an energy sector giant boasting impressive installed capacities exceeding 3.9 GW, yet their market capitalizations tell a different story near to Rs 1 lakh crore. This contrast is starkly highlighted by the emergence of Orient Green Power, a rising star with ambitious plans to reach a 1 GW capacity, already 42 per cent realized, but commanding a market cap of just Rs 2,147 crore, presenting a stark contrast to the established players.
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Orient Green Power Company has announced that its Rights Issue Committee will convene on August 06, 2024, to deliberate on the terms of a proposed equity share issuance, including the number of shares to be issued, issue price, entitlement ratio, record date, and issue schedule. The company has also revealed plans to potentially increase the fundraising target for this rights issue from Rs 225 crore to a maximum of Rs 300 crore, subject to necessary approvals.
Orient Green Power is accelerating its growth in the renewable energy sector. The company is investing Rs 100 crore in its new subsidiary, Delta Renewable Energy, to build a diverse portfolio of wind and solar projects. This, combined with planned fundraising efforts, will fuel Delta's expansion and solidify Orient Green Power's position as a major player in India's renewable energy market.
As of June 2024, Life Insurance Corporation of India (LIC) owns a 1.57 per cent stake in the company. On Friday, shares of the company surged 2 per cent to Rs 21.90 per share with an intraday high of Rs 22.38 and an intraday low of Rs 21.02. The stock gave 81.6 per cent returns from its 52-week low of Rs 12.06 per share and gave multibagger returns of 590 per cent in 3 years.
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Disclaimer: The article is for informational purposes only and not investment advice.
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