Power stock jumps after receiving board approval to raise up to ₹475 Cr via conversion of warrants

Synopsis: The company has caught market attention after it received board approval for fully convertible warrants up to 1,01,00,000 equity shares.

The shares of the company that develop, build, own, manage, and maintain renewable power facilities as an Independent Power Producer (IPP) and as a service provider to Captive Power Producers (CPPs) under the ‘Solarism’ brand have gained investor traction after issue to its promoter group, Quyosh Energia Pvt Ltd.

With a market capitalization of Rs. 8,286.35 crore, KPI Green Energy Ltd’s share on Wednesday made a day high of Rs.430.20 per share, up around 1.14 percent from its previous day’s close price of Rs. 425.35 per share. It has delivered a return of 611.69 percent over a period of five years.

What happened

KPI Green Energy’s board has cleared a preferential issue of up to 1.01 crore fully convertible warrants to promoter-group entity Quyosh Energia Pvt Ltd at Rs. 470.30 per warrant, including a premium, aggregating to roughly Rs. 475 crore, subject to shareholder and regulatory approvals.​

Each warrant converts into one equity share of face value Rs.5. Investors will pay 25 percent  of the issue price on allotment, with the remaining 75 percent payable at the time of conversion. The warrants have a tenure of 18 months and can be exercised in one or more tranches.​

If all warrants are converted, Quyosh Energia’s shareholding will rise to 1,01,00,500 shares, or about 4.87 percent of the post-conversion equity base, strengthening the promoter group’s stake in KPI Green Energy.​ To enable the issue, the company has called an EGM on January 16, 2026, with e-voting scheduled between January 13 and 15, 2026, and has appointed a scrutiniser to oversee the voting process.

About the company

Incorporated in 2008, KPI Green Energy Ltd is part of KP Group. They develop, build, own, manage, and maintain renewable power facilities (solar and wind solar hybrid power projects) as an Independent Power Producer (IPP) and as a service provider to Captive Power Producers (CPPs) under the ‘Solarism’ brand.

This warrant will strengthen the company’s promoter holding, which was at 48.67 percent as of September 2025, with FII & DII holding 9.93 percent shares, and DII holding 0.77 percent of the firm and 41.49 percent of shares held by the public.

Financial Highlights: The revenue from operations grew by 76 percent to Rs. 634 crore in Q2 FY26 from Rs. 360 crore in Q2 FY25. EBIDT declined by 69 percent to Rs. 226 crore in Q2 FY26 from Rs. 134 crore in Q2 FY25. Accompanied by  54 percent growth in net profit to Rs. 117  crore in Q2 FY26 and EPS grew by 56 percent to Rs. 5.53 per share.

Written by Gourav Pratap Singh

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