KPI Green surges 9% ahead of bonus issue; zooms 260% in 9 months

KPI Green Energy shares have risen more than 9% in early trade on Thursday after the solar power generation company said that its board would consider bonus issue in a meeting on December 30. The last bonus that KPI Green Energy had given was on January 18, 2023, in the ratio of 1:1, which means every shareholder got 1 bonus share for every one share held. 

Paring two sessions losing streak, KPI Green shares gained as much as 9.4% to hit a high of ₹1,402.05 in opening trade today, while the market capitalistion rose to ₹5,405 crore. The stock had fallen 4.8% in the past two sessions.

KPI Green Energy shares have seen a strong rally in the calendar year, with stock price surging nearly 200% during this period, driven by improvement in profitability on the back of higher order and commissioning of 30 MW capacities under the subsidiaries. The renewable energy solutions provider has given a return of 260% in the last nine months after hitting its 52-week low of ₹388.55 on March 29, 2023.

The stock touched its all-time high of ₹1,413.70 on December 13, 2023. In the last one year, shares of KPI Green have climbed 207%, whereas it added 65% in six months, and 11% in a month.

In an exchange filing on Wednesday, KPI Green said that its board will meet on December 30, 2023, to consider the proposal for issue of bonus equity shares to the shareholders of the company. The board will also consider and approve increase in authorised share capital to accommodate issue of bonus equity shares.

Among others, the board will also consider and approve the appointments (regularisation) of Amitkumar Subhashchandra Khandelwal and Tejpalsingh Jagatsingh Bisht as non-executive non-independent director and non-executive independent director, respectively.

In a separate release, KPI Green informed exchanges that it commissioned solar power projects totaling 17.35 megawatt peak (MWp) under captive power producer (CPP) segment. These projects were executed by its clients, namely, Jay Metal Tech, Reenam Fabrics Pvt. Ltd., JPB Fibers, and Creative Technologies.

Adding to it, the Gujarat-based company set up another 16.83 MWp solar power projects under the CPP segment, it said in a filing on December 26. “The Company has successfully completed its scope of activities in line with the agreement with the respective CPP customers,” the release noted.

Last week, KPI Green’ board had approved the issue and allotment of 25,35,925 equity shares to qualified institutional buyers (QIBs) at the issue price of ₹1,183.00 per share. The company intends to raise ₹300 crore million via the QIP.

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