KPI Green Energy ended lower on November 19, pulling back from its previous gains. However, the stock is a multi-bagger, gaining up to 10,400% in the past five years. So, the focus has been on KPI Green, especially since the company announced the allotment of second bonus rewards for the year. KPI Green has also been consistent in handing out dividends and has also recently split stock.
KPI Green Energy is a prominent player in the renewable energy sector and an imminent part of KP Group. The company is based out of Gujarat and was incorporated in 2008. KPI Green Energy not only builds and develops but also owns and operates several renewable power plants as an IPP (Independent Power Producer) and CPP (Captive Power Producer). The renewable energy company provides services to Captive Power Producers under a brand called ‘Solarism.’
What is the Share Price?
As the markets closed for the day on November 19, KPI Green stood at Rs. 760 per equity share, falling 2.12%, even as the stock price managed to reach a 52-week high of Rs. 1,116, and a subsequent low of Rs. 374.92 per share. The green energy firm has a market capitalization of Rs. 9,975.79 crores, and KPI has gained nearly 88% in a year.
Bonus Issue
The company operating in the green energy sector announced that it would offer bonus shares in the ratio 1:2. That translates to one bonus share at Rs. 5 per equity for each fully paid-up equity share of Rs. 5. These bonus shares will go to existing shareholders as of the date recorded. However, it is still subject to shareholder approval, which current shareholders will need to exercise with the help of the Postal Ballot.
The bonus announced will include issues worth Rs. 32.815 crores, split into equity shares of 6,56,30,202, each having a face value of Rs. 5.
KPI Green will only be able to credit the bonus shares after getting approval from its shareholders and other statutory or regulatory bodies. According to the listing, the company must dispatch the shares in two months after getting approval from the board, which would fall on or before January 14, 2025.
The record date will also follow these announcements, and eligible investors should ensure they hold on to the stocks by the end of that date.
Implications of the Bonus Issue
The forthcoming bonus issue will be the green energy company’s second this year, following another 1:2 bonus issue on February 15. KPI Green has also announced that it will be splitting stock with an ex-date of July 18, 2024. The company also changed the interim dividend to Rs. 0.20 per share for Fiscal 25 and announced two dividend payouts of the same value with ex-dates of August 21 and October 4.
The performance of KPI Green shares has been remarkable. The stock jumped high, achieving a price of Rs. 770 on November 18, 2024, from a mere Rs. 6.89 on November 18, 2019. KPI stocks have also surged 103.9 percent in the last year alone, climbing from Rs. 377.62 on November 17, 2023, to Rs. 770 on November 18, 2024.
Promising Strategic Growth
KPI Green Energy will continue to show promising growth, owing to the significant achievements the renewable energy company has made in recent years. Examples of such feats include the purchase power agreement with Gujarat Urja Vikas Nigam, which helped the company acquire projects worth 620 MW, 250 MW of which were solar energy projects, and the remaining 370 MW allocated to hybrid projects.
Similarly, other examples include acquiring wind-solar hybrid projects worth 12.72 MW in September, which helped KPI Green expand its CPP business.
KPI Green Energy Stock
Multibagger share
