1:2 Bonus Share & 10,000 Per Cent Returns: Solar Power Company Bags Largest-Ever Order Worth Rs 1,311.40 Crore from Coal India Ltd

The company has a market cap of Rs 6,890 crore with a strong order book.

On Thursday, shares of KPI Green Energy Ltd gained 5 per cent upper circuit to Rs 349.95 per share from its previous closing of Rs 333.30 per share with an intraday high of Rs 349.95 per share and an intraday low of Rs 349.95 per share.

KPI Green Energy Limited is pleased to announce the signing of a contract agreement with Coal India Limited (CIL) for the development of a 300 MWAC grid-connected ground-mounted solar PV plant. This project, located at GIPCL’s Solar Park in Khavda, Gujarat, will also include five years of Operation & Maintenance (O&M) services. The total contract value is Rs 1,311.40 crore, and the project is slated for completion by November 2025.

This significant win for KPI Green Energy further strengthens its renewable energy portfolio. The 300 MWAC (405 MWDC) plant will be executed on an EPC basis and is strategically situated near the company's ongoing 240 MWDC IPP project for GUVNL, allowing for efficient project management and leveraging potential synergies. Securing this prestigious project from a leading central PSU underscores KPI Green Energy's dedication to operational excellence and its contribution to sustainable energy solutions, boosting its completed project portfolio to over 507 MW as of September 30, 2024

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 bonus shares were ex-traded on January 03, 2025.

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. The company has a market cap of Rs 6,890 crore with a strong order book. The stock gave multibagger returns of 270 per cent in just 2 years and a whopping 10,000 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.