KPI Green Energy shares in news today; here's why

Shares of KPI Green Energy Ltd are in focus on Thursday morning after the company said it has bagged a Letter of Award (LoA) for the development of a 66.20 MW hybrid power project under the captive power producer (CPP) segment of the company. The order is received from Sai Bandhan Infinium and is tentatively scheduled to be completed by July 2025, in various tranches as per the terms of the order, the company said in a BSE filing.

KPI Green Energy shares are up 89 per cent in 2024 so far and 229 per cent in the past one year.

"We are pleased to announce that M/s. KPI Green Energy Limited has received the Letter of Award for the development of a 66.20 MW Hybrid Power Project under the Captive Power Producer (CPP) segment of the company," KPI Green Energy said in a BSE filing.

Earlier this month, KPI Green Energy said it obtained approvals from the Chief Electrical Inspector (CEIG) for 12.72 MW of Wind-Solar hybrid power project under its CPP business segment. It also received approval from the Chief Electrical Inspector (CEIG) for 16 MW of solar power projects under the CPP business segment.

Recently, the company raised Rs 1,000 crore through qualified institutional placement (QIP). The fund raise is seen helping the company keep its debt to equity ratio at 1 time, as the execution of IPP projects, as per some estimates, need Rs 3,500-4,000 crore for capex over next 2-3 years based on the prevailing order backlog.

"At full capacity, IPP segment can generate Rs 700-800 crore additional revenue per annum in the longer time frame given long term PPAs. Within IPP, ~140 MW is wind while rest is solar. The management has set an ambitious target of executing cumulative 10,000 MW of power by 2030 v/s 445 MW executed till date," SBI Securities said in a note on August 14.