1:10 Stock Split: Record Date Shall Be Decided; A BUY For Retail Investors?

One of the leading solar panel manufacturers in India, Insolation Energy specialises in developing high-efficiency solar PV modules. One of the leading national suppliers of solar energy and a major player in the Solar EPC market is Insolation Energy Ltd., or INA. With its innovative, created, engineered, and linked more than 500 MW+ of solar PV modules, this BSE SME Listed Company has transformed India's energy landscape with state-of-the-art technology. The company plans to increase its solar panel production capacity to 3 GW by 2024-2025 and start producing 1,200 MT of aluminium frames. By 2025-2026, a 1.2 GW solar cell production line will also be introduced.

Insolation Energy Stock Split

The Board of Directors have considered and approved "Sub-division/split of company's 1 (One) Equity Share having face value of Rs. 10/- (Rupees Ten only) each fully paid-up, into 10 (Ten) Equity shares of the company having face value of Rs. 1/ (Rupee One only) each fully paid-up, subject to the approval of Equity Shareholders of the Company through Extraordinary General Meeting (EGM). The Record Date for sub-division/split of existing Equity Shares shall be decided after taking aforesaid approval of the Equity Shareholders of the Company," said Insolation Energy in a stock exchange filing.
The rationale behind the split/consolidation is to enhance the liquidity of the company's equity shares and to widen shareholder base by making equity shares more affordable to retail investors, informed Insolation Energy to stock exchanges.

Insolation Energy Authorized Share Capital

The Board of Directors also approved and considered "Alteration of the Capital Clause (Clause V) of the Memorandum of Association of the Company on account of aforesaid sub-division/split of existing Equity Shares by deletion of existing Capital Clause (V) i.e. "The Authorized Share Capital of the Company is Rs. 27,00,00,000/- (Rupees Twenty Seven Crore only) divided into 2,70,00,000 (Two Crore Seventy Lakh) Equity Shares of Rs. 10/- (Rupees Ten) each" and inserting the new Capital Clause (V) i.e. "The Authorized Share Capital of the Company is Rs. 27,00,00,000/- (Rupees Twenty Seven Crore only) divided into 27,00,00,000 (Twenty Seven Crore) Equity Shares of face value of Rs. 1/- (Rupees One only) each" subject to the approval of Equity Shareholders through Extraordinary General Meeting (EGM)," said the company in a regulatory filing.

Insolation Energy Financials

One of India's top producers of solar panels, Insolation Energy Limited (INA Solar), has released its financial results for the half-year that ended in September 2024. The company's revenue of Rs. 612.69 crores represented a significant 118% year-on-year rise. On a year-on-year basis, the company's EBITDA climbed by an impressive 172% to Rs. 81 crores from Rs. 29.75 crores. A remarkable 307.53% growth in net profit after tax caused it to shoot up to Rs. 61.27 crores from Rs. 15.03 crores on a year-on-year basis. The Earnings Per Share (EPS) increased from 7.22 to 29.41 as a result.

Insolation Energy Share Price Target

"Insolation Energy stock price is overbought and bearish on the Daily charts with strong resistance at 4470. Investors should be booking profits at current levels as a Daily close below support of 4156 could lead to a target of 3578 in the near term," commented A R Ramachandran, Independent Research Analyst.

Disclaimer

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