2:1 Stock Split Soon After 1:2 Bonus Issue: Rs 1,800 Green Energy Stock Buzzing; Co Wins Rs 686 Crore Project

KPI Green Energy witnessed heavy buying in the last trading session of this week, with the stock hitting a 5% upper circuit on June 28. The uptrend comes after KPI Green bagged a massive order of Rs 686 crore for the developing Solar Photovoltaic Power Project in Kutch, Gujarat.

KPI which is planning on splitting its shares for the first time going ahead, is currently trading at a little over Rs 1,800.

On June 28, KPI Green's stock ended at Rs 1804.60 apiece, which rose by Rs 85.90 or 5% upper circuit. Generally, the upper circuit means that the stock had several buyers but no sellers. The stock's 52-week high and low are at Rs 2,109.25 apiece and Rs 496.92 apiece respectively.

YTD, the stock is up by 89.5% on BSE, while in a year, KPI Green emerged as a multi-bagger with gains of 232%. All-time gains by KPI Green are a whopping 7,104%.

The latest uptrend can be attributed to the new order KPI bagged. On June 27, the company announced that it received a final sanction letter for credit facilities amounting to Rs 686 crore.

The project involves the development of a 200 MWAC (240 MWDC) Solar Photovoltaic Power Project ('Project') in Khavda, Kutch District.

In a statement, KPI said, "This project will significantly enhance our renewable energy portfolio, supporting our dedication to providing the nation with environmentally friendly and sustainable energy. It will reinforce and expedite our efforts to reach our ambitious goal of 1000 MWp capacity by 2025."

Earlier, KPI raised about Rs 300 crore through qualified institutional placement (QIP). Of the total, KPI used Rs 225 crore to partially fund the mentioned project.

KPI said that this financial assistance will play a crucial role in developing the project, with the goal of completing it within the stipulated timeframe.

Looking ahead, KPI Green is going to split its shares 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 will be announced soon.

Generally, a stock split improves the liquidity of a stock and makes it cheaper for both new and existing investors. The face value of a stock undergoing split ratio, reduces, while the share capital remains the same.

This will be the first-ever stock split from KPI Green. Additionally, KPI is set to pay dividend rewards as well. The company has announced 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.

Prior to this, KPI Green turned ex-bonus for a 1:2 ratio on February 15, 2024. This will be the second bonus issue by KPI since 2023. In January 2023, the company delivered bonus shares of a 1:1 ratio. KPI Green's share price was at Rs 300.50 apiece on the 1st of January 2023.