In Wednesday’s trading session, shares of one of the leading renewable energy company, specializing in the development, operation, and maintenance of renewable power facilities, jumped up to 4 percent upon receiving a new work order to develop solar power projects under the Captive Power Producer (CPP) segment.
Price action
With a market capitalization of Rs. 8,252.67 crores on Wednesday, the shares of KPI Green Energy Limited is trading at Rs. 427.80 up by 4.12 percent making a high of Rs. 439.50 per share compared to its previous closing price of Rs. 418.60 per share.
What happened
KPI Green Energy Limited, specializing in the development, operation, and maintenance of renewable power facilities, through its subsidiary Sun Drops Energia Private Limited, has received a domestic work order to develop solar power projects from Various Clients under Distributed Renewable Energy Bilateral Purchase (DREBP) Policy under the Gujarat Renewable Energy Policy-2023.
The order is to develop solar power projects with a total capacity of 62.20 MW under the Captive Power Producer (CPP) segment. This increases the total capacity in the CPP segment to 152.34 MW, as previously disclosed by the company. The total cumulative order book for the CPP segment now stands at 1.60 GW. The projects are expected to be completed in the financial year 2025-26.
Marquee investors
KPI Green Energy has attracted marquee investors, including prominent financial institutions such as Morgan Stanley, Goldman Sachs, BofA Securities, HSBC, and Citigroup. Other notable investors include SBI General Insurance, Motilal Oswal, Citadel Capital Fund, and Societe Generale, reflecting strong investor confidence in the company.
Business Segments
KPI Green Energy operates primarily in two segments: Independent Power Producer (IPP) and Captive Power Producer (CPP). In IPP, the company generates clean, renewable energy through strategically located plants, supplying power to businesses via Power Purchase Agreements (PPAs). In the CPP segment, KPI specializes in developing and managing grid-connected solar and hybrid power projects tailored to meet specific customer needs, helping companies reduce electricity costs.
In H1FY25, the revenue share from IPP is 12.1 percent, while CPP contributed 87.9 percent, KPI’s total portfolio includes 2,409+ MW, with 538+ MW in (IPP), 723+ MW in (Hybrid IPP), 763+ MW in (CPP), and 385+ MW in (Hybrid CPP).
Financials
The company’s revenue rose by 67 percent from Rs 215.95 crore to Rs 361.41 crore in Q2FY24-25. Meanwhile, Net profit rose from Rs 34.75 crores to Rs 69.93 crore during the same period.
Written by Sridhar J
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