On Monday, the stock price of a prominent renewable energy company surged by 5 percent, reaching an intraday high of ₹1,963.95 per share, following the company’s announcement to consider a stock split on May 13.
During Monday’s early trading session at 11:40 a.m., KPI Green Energy Ltd. shares were valued at ₹1,946.95 each, marking a 4.09 percent increase on the National Stock Exchange. The company has a market capitalization of ₹11,779 crore.
As per the company filing, The Board of Directors has set a meeting for May 13, 2024, to review a proposal from shareholders regarding fundraising. This includes discussing options such as issuing equity shares, other equity-linked instruments or securities, convertible preference shares, and warrants that allow holders to apply for equity shares, among other possibilities.
Additionally, the company’s Board of Directors has scheduled another meeting on Thursday, May 23, 2024, to deliberate and approve the proposal for the alteration in the capital structure of the Company through the subdivision/split of existing equity shares, each with a face value of ₹10/-, which are fully paid up.
This will mark the company’s first stock split, following earlier declarations of a 1:2 bonus issue both this year and in January of last year.
During the fiscal year 2023-24, the company embarked on expanding its geographical footprint by signing a Memorandum of Understanding (MoU) with the Government of Uttarakhand to establish 500 MW Solar Power Projects under the Captive Power Producer (‘CPP’) Segment.
Furthermore, the KP Group has signed two MoUs with the Government of Gujarat, committing to invest ₹17,690 crore in the state.
KPI Green Energy Ltd. shares have delivered a multibagger return of 500 percent in a year. A shareholder investment of ₹ 1 lakh in the company a year ago, would be worth ₹ 6 lakh.
The company’s revenue has increased by 59 percent annually, rising from ₹182 crore in Q4FY23 to ₹289 crore in Q4FY24. Further, net profit has increased by 34 percent within the same period, from ₹32 crore to ₹ 43 crore.
KPI Green Energy Ltd builds and manages solar power projects as an independent power producer and captive power producer under the Solarism brand.
In the December quarter, the company raised ₹ 300 crore through a qualified institutional placement (QIP) by issuing shares to qualified institutional buyers (QIBs).
Written by Omkar Chitnis
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