ACME Solar shares off 2% from day's high despite securing Rs 1,571 crore project funding

ACME Solar Holdings Ltd shares on Thursday fell 2 per cent from day's high even as the renewable energy company secured Rs 1,571 crore in long-term project funding from India Infrastructure Finance Company Ltd (IIFCL). From an opening level of Rs 398.85, the stock fell 1.89 per cent to hit a low of Rs 391.30.  A total of 37,000 lakh shares traded on the BSE so far compared with its two-week average volumes of 1.40 lakh shares. This was the third day of fall for the stock that has rallied 64.42 per cent this year so far.

The funding will be used for the construction and development of ACME Renewtech Sixth, a 300 MW assured peak power project in Rajasthan. IIFCL will be the sole lender for the project, with a repayment tenor of 19 years. The latest funding takes ACME Solar's total financing secured during the current fiscal to Rs 10,976 crore.

The stock had also not reacted positively to ACME Solar's previous update on Wednesday, when it informed stock exchanges that a wholly owned subsidiary ACME Marigold Urja executed a Power Purchase Agreement (PPA) with Northeast Frontier Railway (NFR) to set up a 130 MW Round the clock (RTC) renewable energy power project. The same day ACME Solar said it emerged as a successful bidder in SECI's e-reverse auction for the "Selection of RE Power Developers for assured Peak Supply of 6000 MWh (1500 MW x 4 Hrs.) from ISTS-Connected RE Projects in India, under Tariff-Based Competitive Bidding (SECI-FDRE-IX)".

On Thursday, ACME Solar said the project has a 25-year power purchase agreement (PPA) with SECI at a tariff of Rs 6.28 per unit. It will combine solar generation with a 1,350 MWh battery energy storage system (BESS) to provide assured peak power and meet the supply obligations under the PPA.

The project entails a total capital expenditure of Rs 2,123 crore and is part of ACME Solar's broader battery-storage capital deployment programme for the current financial year. The company said grid connectivity is already operational, while the pooling substation and dedicated transmission line are in advanced stages of completion and land for the project has been substantially secured.

ACME Solar said the project is being developed entirely within Rajasthan, which it described as an increasingly important hub for its hybrid renewable capacity. The company has a diversified portfolio of 8,370 MW spanning solar, wind, storage, firm and dispatchable renewable energy and hybrid solutions.