2:1 & 1:2 Bonus In 2024: 2 Energy Stocks Buzzing Near 1-Year Highs On ESOPs, Rating Upgrade; 500-675% Returns

Two energy stocks, KPI Green Energy and KP Energy are buzzing near their 52-week high levels. The two leading solar energy companies that recently paid bonus shares in 2024 are rallying after rewarding employees under their ESOP schemes. Also, KPI Green Energy sees a boost from reaffirmation in credit ratings.

KPI Green Energy:

On April 2, KPI Green Energy shares stood at Rs 1,678.20 at its 5% upper circuits on BSE, nearing its 52-week high of Rs 1,895.95 apiece.

From its 52-week low of Rs 277.51 apiece, the stock is up by 505% on the exchange.

ESOPs: The company on Tuesday announced that it approved the grant of 6,01,399 Stock Options to the eligible employees of the Company, its Subsidiary and Associate Companies as per KPI Green - ESOP 2023. Every option would convert into 1 (One) Equity Share of the company having a face value of Rs. 10/- each. The options are granted at Rs. 106 per stock option.

Credit Ratings: At the start of the trading week, ICRA reaffirmed the credit rating to [ICRA]A-(Stable)/[ICRA]A2+ and also reaffirmed the outlook on the long-term rating to stabilise the company. The ratings reaffirmation factors in the improvement in scale and profitability at the Group level in FY2024 following the significantly higher execution of captive power plant (CPP)/engineering, procurement and construction (EPC) orders and commissioning of the ~30-MW hybrid independent power producer (IPP) capacity under KPI Green.

Also, the rating factor in the extensive experience of the key promoter in the renewable energy sector and allied power plant setting-up activities. The ratings derive comfort from the long-term and medium-term power purchase agreements (PPA) for its IPP capacities with reputed counterparties and a track record of timely payment of bills from them. Further, the ratings derive comfort from the debt service reserve account (DSRA) for the term loans availed for IPP assets, which is expected to support the servicing of debt obligations, providing sufficient cushion in case of any distress.

Bonus Shares: KPI Green turned ex-bonus for its second bonus issue in the ratio of 1:2 in February 2024. This comes right after the 1:1 bonus issue in January 2023.

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.

KP Energy:

This power-generating company's share ended at Rs 387.20 apiece, up by 2.52% on BSE with a market cap of Rs 2,582.24 crore. During the trading hours of April 2nd, the stock did touch an intraday high of Rs 396.50 apiece, which was near its 52-week high of Rs 465 apiece.

KP Energy shares surged by 674.71% from its 52-week low of Rs 49.98 apiece.

ESOPs: On April 2, KP Energy announced that its board of directors approved a grant of 8,69,382 Stock Options to the eligible employees of the Company, its Subsidiary and Associate Companies as per KP Energy- ESOP 2023. Every option would be converted into One (1) Equity Share of the Company having a face value of Rs. 5/-each. The options are granted at Rs 33 per stock option.

Bonus Issue: Since March 2017, KP Energy has issued bonus shares three times. The latest was in February 2024 in the ratio of 2:1, while the other bonuses were of 3:10 in May 2018, and 1.5:1 in March 2017.

KP Energy Ltd. is a trusted corporate group renowned for its strong management, efficient cost structure, and robust order book with ready project sites. Specializing in high-quality Wind Turbine Generators (WTGs) powered by sophisticated technology, the company excels in providing turnkey solutions for wind farm projects across India.