Solar stock engaged in providing engineering, procurement, and construction (EPC) services for residential, agricultural, and commercial applications jumped upto 3 percent in the day’s trade following strategic investments and expansion plans towards growth in the solar sector.
Price Action
With a market capitalization of Rs. 1,046 Crores, the shares of Australian Premium Solar(India) Limited were trading at Rs. 530 per equity share, down 0.06 percent from its previous day’s close price of Rs. 530.30.
What Happened
Australian Premium Solar(India) Limited one of the leading solar manufacturers in India has announced significant investments in two new subsidiaries and a proposed capital increase to drive future growth in the renewable energy sector with aims to strengthen the company’s financial position and provide investment opportunities.
It involves a strategic investment with the acquisition of a 51 percent stake in Aplus Solar Cell Private Limited and it plans the incorporation of a new wholly owned subsidiary on or before March 31st, 2025.
Aplus Solar Cell Private Limited encompasses the manufacturing of TOPCon and monocrystalline solar cells and other materials, along with related technological equipment and accessories. Australian Premium Solar plans to acquire 51 percent of its shareholding, by January 31, 2025, effectively making it a subsidiary of the parent company.
It is positioning itself to diversify its technological portfolio, capturing emerging renewable energy markets and creating flexible corporate structures that can potentially generate incremental revenue streams and technological capabilities in the rapidly evolving solar and energy storage sectors.
Increase in Capital
Australian Premium Solar(India) Limited plans to raise its authorized share capital from Rs.20 crore to Rs. 22 crore, increasing authorized equity shares from 2 crore to 2.20 crore shares at Rs. 10 per share.
The proposed corporate action includes two key issuances, first, up to 3,83,500 equity shares to non-promoter shareholders at Rs. 527 per share and second, up to 94,750 fully convertible warrants to promoter shareholders, each convertible to one equity share at the same price.
About the Company
Australian Premium Solar (India) Limited is engaged in manufacturing and supplying monocrystalline and polycrystalline solar modules, solar water pumps, and inverters and it provides engineering, procurement, and construction (EPC) services for residential, agricultural, and commercial applications. It has a manufacturing capacity of 600MW+.
Financials and Ratios
Its revenue from operations grew by 102 percent from Rs. 81 Crores in H1FY24 to Rs. 164 Crores in H1FY25, accompanied by profits of Rs. 3 Crores to Rs. 13 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 32.09 percent and a Return on capital employed (ROCE) of 27.18 percent. It has reported a debt-to-equity ratio of 0.14.
Written by: Bharath K.S
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