1:2 Bonus Shares: Green Energy Stock Hits New 52-Week High, Gains 28% In 5 Days; Technical Analysis

State-of-art renewable energy solutions provider, KPI Green Energy has been witnessing back-to-back upper circuits and on Tuesday it touched a new 52-week high. That being said, KPI Green surged as much as 529% from its 52-week lows. KPI Green has recently announced the allotment of its bonus issue in the ratio of 1:2. That means that KPI Green is paying 1 bonus share on every 2 existing shares, which will eventually increase the number of shares in an investors' portfolio.

On BSE, in the early trade, KPI Green touched a new 52-week high of Rs 1,630.75 apiece. This will be the fifth consecutive day rally in KPI Green share price. The stock has surged by at least 529.24% from its 52-week low of Rs 259.16 apiece.

So far, in 5-consecutive sessions, KPI Green's share has zoomed by 27.7% on the exchange. KPI Green's share was at Rs 1,277.20 apiece on February 13, which was also the last time it was seen in red.

The fundamentals of KPI Green are broadly positive. As per Trendlyne data, KPI Green Energy Ltd.'s weekly average delivery volume is 52.67%, while it is trading above 8 out of 8 SMAs, and above 7 out of 9 Oscillators in the bullish zone.

KPI Green turned ex-bonus on February 15 for its bonus issue 1:2 -- meaning -- 1 new bonus share on the existing two equity shares. The face value remains the same at Rs 10 each.

Last week, on February 16, the company said, the board of directors had approved the allotment of 2,00,94,203 (Two Crores Ninety-Four Thousand Two Hundred and Three) equity shares having a face value of Rs.10/- each as bonus equity shares, in the ratio of One (1) equity share having face value of Rs. 10/- each for every Two (2) existing equity share having face value of Rs. 10/- each, to the Members whose names appeared in the Register of Members/List of beneficial owners as on February 15, 2024, being the record date fixed for that purpose.

Consequently, KPI Green said, the paid-up equity share capital of the Company stands increased from Rs. 40,18,84,050/- (Rupees Forty Crores Eighteen Lakhs Eighty-Four Thousand and Fifty only) comprising 4,01,88,405 (Four Crores One Lakh Eighty-Eight Thousand Four Hundred and Five) Equity Shares of Rs. 10/- each to Rs. 60,28,26,080/- (Rupees Sixty Crores Twenty-Eight Lakhs Twenty-Six Thousand and Eighty only) comprising 6,02,82,608/- (Six Crores Two Lakhs Eighty-Two Thousand Six Hundred and Eight) equity shares of Rs. 10/- each.

The new Bonus Equity shares allotted shall rank pari-passu in all respects with the existing Equity Shares in the Company. The requisite compliances concerning credit of Bonus Equity Shares in the demat accounts of the Shareholders shall be completed in due course, it said.

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.

In the third quarter of FY24, 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.

Disclaimer: The write-up highlights the latest development in a stock split, 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.