14,000 Per Cent Returns: Solar Power Company Incorporated a New Subsidiary For Order Bagged From NTPC Ltd and Board To Raise Funds via Non-Convertible Debentures

The stock gave multibagger returns of 165 per cent in just 1 year and a whopping 14,000 per cent in 5 years.

Refex Renewables & Infrastructure Limited (RRIL) has secured a significant contract for a 100-MW Solar Project from NTPC Limited. This project will be undertaken by Refex Green Power Limited (RGPL), a wholly owned subsidiary of RRIL. To facilitate this project, RGPL has incorporated a new subsidiary, Refex Solar SPV Five Limited (SPV Five), which will serve as the solar power developer. SPV Five has been established with an initial paid-up equity share capital of Rs 10,00,000 and will be responsible for setting up and operating the 100-MW Solar Power Project as per the terms of the Power Purchase Agreement (PPA) signed with NTPC Limited.

The acquisition of SPV Five is a related party transaction, as it is a wholly owned subsidiary of RGPL and, consequently, a step-down wholly owned subsidiary of RRIL. The total cost of acquisition, including the initial paid-up equity share capital, is Rs 10,00,000. No regulatory approvals are required for this acquisition, and it was completed on December 04, 2024. The estimated project cost for the 100-MW Solar Power Project is Rs 480 crore.

Additionally, Refex Renewables & Infrastructure Limited (RRIL) informed that a Board Meeting considered and approved a proposal for fundraising through the issuance of non-convertible debentures on a private placement basis.

About the Company

Refex Renewables Infrastructure company has a rich legacy in the silicon industry and was originally formed in 1959 with the establishment of the Monsanto Electronic Material Company (MEMC), a division of the multinational Monsanto Corporation. Initially, its business pioneered and focused on the manufacturing of silicon wafers for semiconductors in the burgeoning electronics industry. The company has a market cap of Rs 454 crore with a 3-year stock price CAGR of 150 per cent.

On Thursday, shares of Refex Renewables & Infrastructure Ltd plunged 2 per cent to Rs 1,000.60 per share from its previous closing of Rs 1,021 per share. The stock gave multibagger returns of 165 per cent in just 1 year and a whopping 14,000 per cent in 5 years. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.