1:2 Bonus Shares: Powerpack Green Energy Stock Upbeat After MSCI Rejig; 605% Returns From Lows

KPI Green Energy, a powerhouse in renewable energy, has witnessed a massive rally in the past two days due to entry into MSCI's smallcap index. The company recently turned ex-bonus for its bonus issue in the ratio of 1:2. The fundamentals of KPI Green are currently strong, making it a multi-bagger with over 600% gains since 52-week lows. Although the market is open for trade on Saturday, it is not a regular trading session, and hence gains are recorded till March 1, as of now.

On BSE, March 1, KPI Green shares ended at Rs 1,742.15 apiece marginally up. However, the stock during the trading session reclaimed over Rs 1,800 mark to hit an intraday high of Rs 1,828 apiece. Overall, on this day, KPI Green shares rallied by 5%.

Meanwhile, on February 29, KPI Green shares froze at its 5% upper circuit to Rs 1,741.10 apiece, due to its addition to the MSCI index. Before this, KPI Green shares were at Rs 1,658.20 apiece.

From its 52-week low of Rs 259.16 apiece, KPI Green has skyrocketed by a whopping 605.35%. The stock is closing its gap towards 52-week high of Rs 1,895.95 apiece.

Under the MSCI India Domestic Smallcap Index, 28 securities were added, while 12 were deleted from the Indian market. Among the additions were popular names like KPI Green, Cyient DM, Honasa Consumer, IIFL Securities, Indian Renewable Energy, ITD Cementation India, JK Infraprojects, Jaiprakash Associates, Paisalo Digital, Sandur Manganese & Iron, SBFC Finance, Swan Energy, TARC, Vedant Fashions, and Netweb Technologies among others.

According to the Nuvama report, due to the addition to the MSCI smallcap index, KPI Green is expected to record an inflow of $5 million, which comes as a positive for the stock.

The fundamentals of KPI Green are currently strong, especially its Return On Equity (RoE) and Price-To-Equity Ratio.

As per ICICI Direct's website, KPI Green's stock PE (TTM) is at 69.62x, while its book value is at 124.5813, and further, its return on capital employed (ROCE) is at 24.57% and RoE at 53.26%.

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.

Earlier this week, KPI Green said, that 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.

"All eligible shareholders are therefore requested to ensure that their bank details are updated with their DEMAT account immediately," KPI Green added.

Further, KPI Green also announced that the tariff for the 200MWAC (240MWp) grid-connected Solar Photovoltaic Power Project was won by KPI Green Energy Limited ('the Company') 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 up to 800MW has been adopted by Hon'ble Gujarat Electricity Regulatory Commission ('GERC').

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.

Disclaimer: The write-up highlights the latest development and its 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.