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Gujarat-based company proposes bonus issue for shareholders. Details
In January too, KPI Green Energy Limited issued additional shares, in a 1:1 ratio.
KPI Green Energy Limited, a Gujarat-based renewable power generating firm, is likely to issue bonus shares to its shareholders, CNBC TV18 has reported.
To accommodate the bonus issue, the company could approve an increase in its authorised share capital, the report added.
Why the proposal?
According to the website, this is because KPI Green's shares have seen a significant rise this year, increasing 183%. Its stock is trading marginally lower than the record high of ₹1413.90, achieved on December 13.
KPI Green's board is, therefore, contemplating additional shares for the company's shareholders, and the proposal is likely to be taken up – and approved – at the board meeting on Saturday. The proposal, if approved, will be the second instance of KPI Green issuing additional shares to its shareholders; in January, these were given in the ratio of 1:1, i.e., one free share for every one share held.
About KPI Green Energy Limited
It was incorporated in 2008 and is the renewable energy vertical of the KP Group. With a focus on providing renewable power through various business verticals, it develops, builds, owns, operates, and maintains renewable power plants both as an Independent Power Producer (IPP), and as a service provider to Captive Power Producer (CPP) under the brand name of 'Solarism'.
The firm's current solar portfolio is worth 356 MW and the management expects a 2:1 debt-to-equity ratio, said CNBC TV18.
