1:2 Bonus Issue: Rs 1,720 Green Energy Stock Hits New Record High, Up By 564% From 1-Year Lows

Gujarat-based renewable power company, KPI Green Energy touched a record high of Rs 1,719.75 apiece, which was also its 5% upper circuit. KPI Green's share price froze at its upper circuit, indicating that there were no sellers on February 22nd. The stock has emerged as a multi-bagger with mind-boggling gains. KPI Green's share price has been trending after its ex-bonus for a 1:2 ratio.

On BSE, KPI Green share price ended at Rs 1,719.75 apiece, the 5% upper circuits. That being said, KPI Green shares are up by a whopping 563.58% on the exchange.

KPI Green is a small company with a market capitalisation of Rs 10,367.10 crore.

KPI Green has announced the allotment of 2,00,94,203 equity shares having a face value of Rs.10/- each as bonus equity shares, in the ratio of One (1) equity share having a face value of Rs. 10/- each for every Two (2) existing equity share having face value of Rs. 10/- each, to the Members whose names appeared in the Register of Members/List of beneficial owners as on February 15, 2024, being the record date fixed for that purpose.

Consequently, KPI Green said, the paid-up equity share capital of the Company has increased from Rs. 40,18,84,050/-comprising 4,01,88,405 (Four Crores One Lakh Eighty-Eight Thousand Four Hundred and Five) Equity Shares of Rs. 10/- each to Rs. 60,28,26,080, comprising 6,02,82,608/- equity shares of Rs. 10/- each.

The new Bonus Equity shares allotted shall rank pari-passu in all respects with the existing Equity Shares in the Company. The requisite compliances concerning credit of Bonus Equity Shares in the demat accounts of the Shareholders shall be completed in due course, it said.

During Q3FY24, the company recorded a consolidated net profit of Rs 50.60 crore compared to a profit of Rs 34.45 crore in Q3FY23 and Rs 34.74 crore in Q2FY24. Consolidated revenue from operations stood at Rs 330.11 crore in Q3FY24, versus Rs 179.21 crore in Q3FY23 and Rs 215.06 crore in Q2FY24.

Also, in the third quarter, KPI Green's biggest achievement was raising Rs 300 Cr through a Qualified Institutional Placement (QIP) by issuing shares to Qualified Institutional Buyers (QIBs), marking a major milestone in its journey. The QIP was oversubscribed three times within hours of opening, reflecting the overall trust of large institutional investors in KP Group and its growth prospects. SBI Capital Markets was the book-running lead manager (BRLM).

Here are the growth strategies by KPI Green:

1. The company leverages the strong and growing demand for renewable energy solutions, especially in the context of global efforts to combat climate change and shift towards sustainable practices. The increasing demand for clean energy sources presents an opportunity for KPI Green to expand our market presence and boost revenue.

2. Ensuring authenticity and transparency in all business dealings fosters trust with customers, investors, and stakeholders. By
maintaining high ethical standards and clear communication, KPI believes that it can attract more clients and gain a competitive advantage in the market.

3. Meeting project timelines and delivering on commitments enhances its reputation and strengthens relationships with clients. Timely completion of projects can lead to repeat business and positive word-of-mouth referrals, contributing to sustained growth.

4. Recognizing that hybrid renewable energy projects are the future, the company invests in integrating various renewable sources like wind, solar, and storage technologies. Such diversification not only enhances energy reliability but also opens up new revenue streams and improves margin prospects.

5. There is sufficient thrust and focus at the national level on renewables with plans of 500 MW and 50% capacity of renewable resources. Centre has an ambitious plan to become net zero by 2070. Gujarat Government has also announced its renewable policy in October 2023 for the next five years giving enough push to renewables. Removal of capacity restriction and monthly banking of energy is great for the adoption of green energy.

KPI Green Energy (Formerly known as K.P.I. Global Infrastructure Limited), is the Renewable vertical of KP Group and a prominent Gujarat-based Renewable power generating company. Incorporated in February 2008, focused on providing Renewable power through different Business verticals.