1:2 Stock Split Announced: Multibagger Green Energy Stock Surges; Gives 450% Returns In 12 Months

In a move aimed at boosting shareholder value and enhancing market liquidity, KPI Green Energy Ltd has announced its first-ever stock split. The board, after its meeting on Thursday, approved the split of one share with a face value of Rs 10 each into two shares of Rs 5 each. This decision comes on the back of a series of shareholder-friendly initiatives and a strong financial performance over the past year.

Stock Split

The stock split, the first in the history of KPI Green Energy, is designed to make the shares more affordable and increase the number of outstanding shares, thereby improving trading liquidity. Stock splits are often viewed positively by investors as they make shares more accessible to a broader base of investors. The record date for the stock split will be finalized once shareholder approval is obtained through a postal ballot.

Bonus Shares and Dividend Payouts

This announcement follows a year of rewarding shareholders with bonuses and dividends. Earlier in 2024, KPI Green Energy issued one bonus share for every two held. In 2023, the company had also issued one free share for every share held.

In addition to the stock split, KPI Green Energy recently recommended a final dividend of 2%, equivalent to Rs 0.20 per equity share of Rs 10 each, for the financial year 2023-24. This recommendation is subject to approval at the upcoming Annual General Meeting. The record date for this final dividend will be announced in due course. For FY24, the company has already delivered the first and second interim dividends of 2.5% each, amounting to Rs 0.25 per share. In 2023, the company paid a 28.50% dividend, totalling Rs 2.85 per share.

Fund Raise Plans

In another development, KPI Green Energy plans to raise Rs 1,000 crore through the issuance of equity shares or other equity-linked securities. This fundraising will be carried out via qualified institutions placement (QIP) in multiple tranches. The funds are expected to support the company's expansion plans and strengthen its financial position.

Q4 Earnings

KPI Green Energy's financial performance has been impressive. The company's total revenue for the March quarter surged to Rs 292.96 crore, up from Rs 184.41 crore a year ago. The consolidated net profit for FY24 also saw a significant increase, rising to Rs 161.65 crore from Rs 109.62 crore in the previous year.

Orderbook

The company has also been successful in securing substantial new orders. On April 30, KPI Green Energy announced new orders for solar power projects totalling 74.3 MW. This addition to their project portfolio shows the company's growing presence in the renewable energy sector.

Market Performance

The positive developments and strong financial results have reflected well in the stock market. As of 1:55 pm on Thursday, shares of KPI Green Energy were trading with gains of nearly 2% at Rs 1,915 per share on the National Stock Exchange (NSE). The stock has seen a rise, doubling its value in 2024 with a gain of 106%. Over the past 12 months, KPI Green Energy's stock has soared by 445%, highlighting investor confidence and the company's robust market performance.

KPI Green Energy is on a growth path, as evidenced by its first-ever stock split, significant fundraising plans, and consistent financial performance. The company's approach to rewarding shareholders, coupled with initiatives to enhance market liquidity and fund expansion, positions it well for future success.