Power Stock Declares 1st Ever 1:2 Bonus Shares After FIIs Stake Jumps 7.22%

KPI Green Energy Ltd. is a power sector small-cap company having a market capitalization of Rs 5,828.73 Cr. Under the brand name "Solarism," the firm designs, constructs, owns, runs, and maintains solar and hybrid power plants as an Independent Power Producer (IPP) and as a service provider to Captive Power Producers (CPPs). Having risen 222% YTD, KPI Green Energy is one of the multibagger stocks of 2023. However, what's even more lucrative for shareholders is that the company has announced the first bonus shares in a 1:2 ratio.

The company said in a stock exchange filing that the meeting of the Board of Directors held on December 30, 2023 "Considered and recommended issue of Bonus Equity Shares in the proportion of 1:2 i.e. 1 (One) bonus equity share of Rs. 10/- (Rupees Ten) each for every 2 (Two) existing equity share of Rs. 10/- (Rupees Ten) each fully paid up, held by the shareholders of the Company as on the record date, subject to the approval of shareholders through Postal Ballot."

The Board also approved appointment of Mr. Amitkumar Subhashchandra Khandelwal (DIN: 09287996) as Non-Executive Non-Independent Director of the company and Dr. Tejpalsingh Jagatsingh Bisht (DIN: 02170301) as NonExecutive Independent Director of the company.

2,00,94,203 (Two Crores Ninety-Four Thousand Two Hundred and Three) equity shares of Rs. 10/- each fully paid up are the total number of securities proposed to be issued as a part of the bonus issue announcement. Bonus shares will be issued out of the company's Securities Premium Account as of March 31, 2023 and the securities premium of the company was Rs. 20,09,42,030/- is required for implementing the bonus issue.

As of March 31, 2023, securities premium account of Rs. 33.33 Crores and retained earnings of Rs. 158.84 Crores were the free reserves and/ or share premium available for capitalization.

"Subject to obtaining Shareholders approval and other Statutory/Regulatory approvals, as may be necessary, the Bonus shares shall be credited/ dispatched within 2 months from the date of the Board approval i.e. on or before February 29, 2023," is the estimated date by which such bonus shares would be credited/dispatched said KPI Green Energy in a stock exchange filing.

As of December 2023, the company recorded promoters' shareholding of 53.08%, FIIs stake of 7.22%, DIIs stake of 2.25%, and public stake of 37.46%, according to Screener.in. Trendlyne data shows that promoters' holdings climbed from 54.81% in the June 2023 quarter to 54.83% in the September 2023 quarter; FII/FPI's holdings went up from 3.48% in the Q1FY23 quarter to 4.24% in the Q2FY24 quarter; and institutional investors' holdings jumped from 3.54% to 4.24%.

The scrip reached a 52-week-high of Rs 1,490.00 on (01/01/2024) and a 52-week-high of Rs 388.55 on (29/03/2023).