1:2 Stock Split, 2% Dividend: Green Energy Stock Hits 5% Upper Circuit After 11% Drop; Makes Big Announcement

After falling for nearly 11%, renewable energy company, KPI Green Energy stock witnessed a massive rally on June 6 to the point it hit 5% upper circuit. The bullish trend comes after KPI announced win new order of 26.15 MW for executing solar power projects for its wholly-owned subsidiary. KPI Green's share price which is currently above Rs 1,700 is set to split for the first time in a 1:2 ratio, while the company will also reward a 2% dividend ahead.

At the time of writing, KPI Green's share price traded at Rs 1,760.19 apiece, up by 4.6% on BSE with a market cap of Rs 10,610.34 crore. In the early trade, the stock touched its 5% upper circuit of Rs 1,767.50 apiece.

KPI Green is a couple of hundred away from its 52-week high of Rs 2,109.25 apiece, while the stock gained by nearly 400% on Thursday from its 52-week low of Rs 353.51 apiece.

From June 4-5, KPI Green stock touched back-to-back 5% lower circuits. Its lowest price level was on Wednesday at Rs 1,668.85 apiece before the stock ended at Rs 1,695.00 apiece during the day. Overall, the stock plunged by 10.80% in the two days.

The uptrend comes after KPI announced in the late evening of yesterday that it bagged new orders of 26.15 MW for executing solar power projects have been received by M/s. Sun Drops Energia Private Limited, a wholly owned suďsidiary of the company under the Captive Power Producer (CPP) segment.

Sun Drops Energia shall develop the projects as per the terms of the order, it said. The projects are scheduled to be completed in the financial year 2024-25, in various tranches as per the terms of the order.

KPI Green Energy Stock Split:

KPI has announced stock sub-division in the ratio of 1:2. It would mean that 1 equity share having a face value of Rs. 10/- (Rupees Ten only) each, fully paid-up, will be sub-divided into 2 (Two) equity shares having a face value of Rs. 5/- (Rupees Five only) each, fully paid up at KPI Green.

KPI has said that the record date for the above sub-division/split of Equity Shares shall be decided after obtaining approval of the shareholders through a postal ballot and will be intimated in due course.

KPI Green Dividend:

Moreover, KPI is also going to pay 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.

KPI Green Fundraising:

Another key factor to keep focus on in KPI Green shares is that the company announced fundraising of Rs 1,000 crore 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').

KPI Green Bonus Issue:

Earlier this year, KPI Green 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 Limited (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.