1:2 Bonus, 2% Dividend, Fundraising: Green Energy Company's 1st Ever Stock Split Soon; Beats Nifty50 By 418%

Powerpack company, KPI Green Energy will be in focus in the trading week from May 20th to 24th as the company will declare its first-ever stock split ratio. Generally, in times of stock split, the demand for listed stock is higher, liquidity improves and it becomes more affordable for both new and existing investors. KPI Green Energy has witnessed a tremendous run on BSE and NSE since last year.

Trading around Rs 1,930 per share, KPI Green has rallied by 103% on BSE in less than 5 months of 2024. That's not all, the stock has even skyrocketed by a whopping 448% on the exchange in a year. KPI Green was merely at Rs 352.30 levels a year ago in May.

The stock's 52-week high and low are at Rs 2,109.25 and Rs 320.83 apiece respectively.

In the special trading session on Saturday, KPI Green shares ended at Rs 1927.90 apiece, marginally up in a single day. Its market cap stood at Rs 11,621.88 crore.

KPI Green Energy Stock Split:

In its regulatory filing, KPI Green announced that a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, May 23, 2024, inter-alia:

- to consider and approve the proposal for alteration in the capital of the Company by subdivision/split of existing equity shares of the Company having a face value of Rs. 10/- each, fully paid up.

- any other matter with the permission of the chair."

This will be KPI's first-ever stock split if announced on May 23.

KPI Green Energy Fundraising:

This year, KPI announced key rewards for investors and key developments to boost its growth ahead. One of them is its latest announcement for fundraising on May 13.

In a board meeting, last week, KPI Green announced fundraising through the issuance of equity shares of the Company ('Equity Shares') or any other equity-linked securities of the Company or other securities convertible into or exchangeable for Equity Shares by way of qualified institutions placement (including one or more qualified institutional placements in tranches) ('QIP').

The fundraising will be carried out in tranches for an aggregate amount of Rs 1,000 crore.

Recently, KPI also announced a final dividend for FY24 alongside the Q4 earnings report, while it turned ex-bonus earlier in the year for the ratio of 1:2.

KPI Green Energy Bonus Issue:

Earlier in February, the company delivered a 1:2 bonus issue. The company allotted 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.

KPI Green Energy Dividend:

The company has recommended a final dividend of 2% i.e. Re. 0.20 (Twenty Paisa only) per equity share of the face value of Rs.10/- each for the financial year 2023-24, subject to the approval of the Shareholders at the ensuing Annual General Meeting of the Company.

The record date for the final dividend will be announced in due course. For FY24, KPI has delivered the first and second interim dividends of 2.5% each valuing to Rs 0.25 per share. In 2023, the company delivered up to 28.50% dividend amounting to Rs 2.85 per share.

KPI Green Energy Earnings:

During the fourth quarter of FY24, KPI Green Energy reported revenue from operations of Rs 167.94 crore, compared to Rs 95.36 crore in Q4FY23, and Rs 275.18 crore in Q3FY24.

Meanwhile, the net profit stood at Rs 25.85 crore, up from Rs 8.65 crore in Q4FY23, however, was lower from Ras 40.77 crore in Q3FY24.

For the full-year fiscal, revenue jumped to Rs 723.75 crore versus Rs 487.52 crore in FY23. While PAT was at Rs 103.71 crore in FY24 against Rs 78.39 crore in FY23.

KPI Green Energy Fundamentals:

As per Axis Securities report, in the last 1 year KPI Green Energy Ltd has beaten Nifty 50 by 418.33% (CAGR difference). However, in a year, the volatility of KPI Green Energy Ltd is Higher than Nifty 50 volatility by 3.02%. Further, for 8 out of the Last 12 Months, i.e. 67% of the time it has beaten Index returns.

Also, in terms of profitability, in 4 out of the last 5 years, the PAT Growth of the company has been high. In 5 out of the last 5 years, the ROE has been high. Further, in 3 out of the last 5 years, Debt - The equity ratio has been high.

Among its stock trivia, Axis Securities' data highlighted that

- FII shareholding in K P I Global Infrastructure Ltd has increased by 26.29% in the past 3 Months

- K P I Global Infrastructure Ltd has topped the 5 years performance among stocks in Power Infrastructure Sector

- K P I Global Infrastructure Ltd has topped the 3 years performance among stocks in Power Infrastructure Sector

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.