1:2 Stock Split After Bonus Issue: Green Energy Stock In Focus, Makes Big Announcement; 400% Rise From Lows

KPI Green Energy stock will be in focus next week after the company announced that it received approval for allotting equity shares of subsidiary Sun Drops to an investor. KPI Green which is currently trading above 400% from its 52-week lows, is set to split in the ratio of 1:2 for the first time ever and pay dividend rewards of 2% soon. This comes after its bonus issue of 1:2 earlier in 2024.

On June 7, KPI Green stock ended at Rs 1824.70 apiece, up by 3.25% pm BSE with market cap of Rs 10,999.77 crore.

The stock is closing its gap with 52-week high of Rs 2,109.25 apiece, while trading up by 413.12% from its 52-week low of Rs 355.61 apiece.

In its regulatory filing, KPI Green Energy said, the board of directors of Sun Drops Energia Private Limited, a wholly-owned subsidiary, approved the issue of 10,66,098 equity shares of Sun Drops to Dr. Faruk G. Patel ("Proposed Allottee") on a private placement basis ("Proposed issue"). The Proposed issue is representing 16.62% of the expanded paid-up share capital of Sun Drops. Proposed issue shall be subject to the approval of members of Sun Drops and other necessary approvals.

Further, post completion of the above mentioned private placement, Sun Drops will be ceases to be a wholly-owned subsidiary and continue as a subsidiary representing 83.38% of the expanded paid-up share capital of Sun Drops. The expected date of completion is June 20, 2024. However, it may vary due to unforeseen events or delays in getting any necessary approval.

This comes after when KPI Green 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 Green will split 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.

The record date of 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:

KPI Green is also looking to raise 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.