1:2 Bonus Issue; Green Energy Stock In Focus Ahead, 9,987% Returns In 5 Years; BUY Before Big Reward?

KPI Green Energy's share price has been witnessing a correction in the past six months, tumbling by a little over 20%. Despite this, the stock has managed to maintain gains in YTD level, rising by 53.5%. In the long-term, KPI Green also becomes a multi-bagger with gains of nearly 9,986.90% on BSE in 5 years. KPI Green stock will be in focus ahead for its second bonus issue of 2024.

KPI Green Energy Share Price:

After market hours on November 22, KPI Green shares dipped by 2.8% to close at Rs 731.30 apiece. Its market cap stood at Rs 9,599.07 crore. KPI's weekly drop is about 3%, while in a month and six-monthly period, the stock has dropped by 3.06% and 20%.

YTD, the stock is up by 53.54% on BSE so far. The stock was merely at Rs 476.28 level at the start of the current year.

In the longer run, the KPI has made a strong surge of 9,986.90% on BSE so far. The stock was merely at Rs 7.25 apiece 5 years ago on November 21, 2019.

The stock's 52-week high and low are at Rs 1,116 apiece and Rs 375.19 apiece respectively.

KPI Green Energy Bonus Issue:

The power-generating player has announced Bonus Equity Shares in the proportion of 1:2 i.e. 1 (One) bonus equity share of Rs. 5/- (Rupees Five) each for every 2 (Two) existing equity shares of Rs. 5/- (Rupees Five) 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.

For the upcoming bonus, KPI will issue Rs 32.815 crore worth of shares, which will be divided into 6,56,30,202 equity shares having a face value of Rs 5 each. As of March 31, 2024, the following balances are available on a Standalone basis: Securities premium account: Rs. 427.60 Crore, and Retained Earnings: Rs. 260.37 Crore.

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 January 14, 2025, as per the filing.

The record date for the bonus issue will be announced accordingly. To be eligible for KPI's upcoming bonus reward, investors should hold the company's stocks in their demat accounts by the end of the record date.

The upcoming bonus issue will be the second in 2024 by KPI Green. The last bonus issue was of 1:2 and for this KPI turned ex-date on February 15, 2024.

Apart from the bonus issue, KPI stock has also split by a 1:2 ratio and the ex-date was on July 18, 2024.

Notably, earlier on November 14, the company turned ex-dividend for its interim dividend to the tune of Rs 0.20 per share for FY25. Earlier in 2024, the company already had two dividends of Rs 0.20 each and its ex-dates were on August 21 and October 4.

BUY KPI Green Energy Share?

As per the Trendline data, the consensus recommendation from 1 analyst for KPI Green Energy Ltd. is STRONG BUY.

KPI Green Energy 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. The Company develops, builds, owns, operates and maintains Renewable power plants as an Independent Power Producer (IPP) and as a service provider to Captive Power Producers (CPP) under the brand name 'Solarism'.