1:4 bonus shares: Multibagger solar stock to keep under the radar as company claims Rs 8.31 crore as arbitration award in the matter with Hindustan Aeronautics Ltd
The stock gave multibagger returns of over 28,500 per cent from its 52-week low of Rs 2.05 per share.
Under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as read with SEBI Circular No. CIR/CFD/CMD/4/2015 dated September 09, 2015, we hereby inform you that Ujaas Energy Limited (Claimant) has received an arbitration award dated September 14, 2024, passed by the sole arbitrator in the matter of arbitration between the Claimant and Hindustan Aeronautics Limited (Respondent). The arbitration concerned the 15 MW (ac) polycrystalline SPV under DCR grid interactive ground-mounted solar power plant with associated power evacuation setup, along with a 5-year comprehensive operation and maintenance agreement.
The Hon'ble arbitrator has awarded M/s. Ujaas Energy Limited a sum of Rs 8.31 crore with interest at 9 per cent. The company is currently conducting a thorough review of the said award and seeking expert advice to determine the appropriate course of action.
About the Company
The shares of Ujaas Energy Ltd last traded on Monday, September 23, 2024. Despite facing trading restrictions imposed due to insolvency and restructuring proceedings (IBC), the stock climbed by 5 per cent, reaching a new 52-week high of Rs 469.75 per share. This sharp increase stands in stark contrast to its 52-week low of just Rs 2.05 per share, highlighting the stock's extreme volatility. The shares of the company have a PE of 100x and an ROE of 56 per cent.
Ujaas Energy Ltd, established in 1999, is a solar power company involved in generating, selling, and servicing solar power plants. It operates under the "UJAAS" brand, developing, owning, and maintaining solar energy power plants. The company offers engineering, procurement, construction, solar park, and rooftop solutions, along with operations and maintenance services. With an installed capacity of approximately 14 MW and over 235 MW of solar power plants set up, Ujaas Energy provides various solar power solutions through its Ujaas Park, Ujaas My Site, and Ujaas Home platforms. Additionally, the company manufactures transformers and has ventured into the electric two-wheeler market with its E-Spa brand.
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Ujaas Energy Ltd has announced plans for a bonus share issue in a 1:4 ratio. This means that for every four existing fully paid-up Re. 1 equity shares held by public shareholders (excluding promoters), they will receive one new fully paid-up Re 1 equity share and the record date for the same was September 20, 2024. This bonus issue, to be funded by utilizing share premium and free reserves, will increase the authorized share capital from Rs 30 crore to Rs 45 crore. Additionally, the company seeks shareholder approval for fundraising through FPO, ADR, GDR, QIP, or right issue up to Rs 500 crore.
According to Quarterly Results, the company reported net sales of Rs 6.29 crore in Q1FY25 while the company reported a net profit of Rs 3.82 crore in Q1FY25 compared to a net loss of Rs 5.86 crore in Q1FY24, an increase of 165 per cent. In its annual results, the company reported net sales of Rs 27 crore and net profit of Rs 29 crore in FY24.
The company has a market cap of Rs 6,183.16 crore and has delivered good profit growth of 42.9 per cent CAGR over the last 5 years. The stock gave multibagger returns of over 28,500 per cent from its 52-week low of Rs 2.05 per share. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.