1:2 Bonus Issue: Rs 250-Rs 1,750, Green Energy Stock Tumbles For 2-Days Straight, But ROE Still Strong At 42%

KPI Green Energy's share price witnessed a bearish start to the week. The stock has tumbled for a second consecutive day on February 27. This is despite KPI Green who recently turned ex-bonus announced that a fractional portion of bonus shares will be sold in an open market. Also, the company bagged a grid-connected Solar Photovoltaic Power Project.

KPI Green Share Price:

Despite the latest hiccups in share prices, KPI Green is a multi-bagger. The stock entered the red zone starting this week after staying on a gaining spree for eight consecutive sessions from February 14 to 23rd. Hence, investors cashed in some of their gains.

On February 27, KPI Green shares dipped by 1.54% to Rs 1745.45 apiece with a market cap of Rs 10,522.03 crore. The power stock also touched an intraday high of Rs 1829.95 apiece on Tuesday which was near its 52-week high of Rs 1,895.95 apiece.

Even in red, KPI Green is up by 573.50% on BSE from its 52-week low of Rs 259.16 apiece.

KPI Green Bonus Shares:

As per KPI Green, 21,634 Equity Shares being fractional shares out of bonus issue held by the TRUSTEE on behalf of the shareholders eligible for the fractional entitlements, will be sold in the open market and the net sale proceeds (after deduction of all such expenses incurred for sale) will be distributed to the respective eligible shareholders as per the data received from Bigshare Services Private Limited, Registrar and Transfer Agent of the Company.

The net sale proceeds will be transferred to the eligible shareholder's bank account registered with their depository participant within the due course of time from the date of sale, it said.

KPI turned ex-bonus on February 15, which is also its record date to determine the eligibility of Shareholders entitled for issuance of Bonus Equity Shares. The 1:2 bonus issue ratio means that the company will issue 1 bonus share having a face value of Rs 10 each, on every two existing equity shares having a face value of Rs 10 each.

KPI Green New Order:

Further, the company announced that the tariff for the 200MWAC (240MWp) grid-connected Solar Photovoltaic Power Project was won by KPI Green Energy through a competitive bidding process vide RFS No. GUVNL/800 MW/Khavda/Solar (Phase XX) dated 20.05.2023 issued by GUVNL for Procurement of Power from 800 MW grid-connected Solar Photovoltaic Power Projects located in Gujarat State Electricity Corporation Ltd. ('GSECL') Solar Park at Khavda (GSECL Stage 2) with Greenshoe option of additional capacity upto 800MW has been adopted by Hon'ble Gujarat Electricity Regulatory Commission ('GERC').

The tariff adoption order dated February 23, 2024, has been published and is available on the website of Hon'ble GERC.

KPI Green Earnings:

The company's Q3 earnings were also healthy. In the December 2023 quarter, the company earned a consolidated net profit of Rs 50.60 crore compared to a profit of Rs 34.45 crore in Q3FY23 and Rs 34.74 crore in Q2FY24. Consolidated revenue from operations stood at Rs 330.11 crore in Q3FY24, versus Rs 179.21 crore in Q3FY23 and Rs 215.06 crore in Q2FY24.

About KPI Green:

KPI Green Energy (Formerly known as K.P.I. Global Infrastructure 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'.'

Disclaimer: Disclaimer: The write-up highlights about the latest development in bonus issue, 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.