Orient Green Power cuts right issue size; stock soars 240% in a year

LIC is one of the investors in Orient Green Power Company

Orient Green Power has cut the size of its proposed rights issue to Rs 250 crore. Last December, the company board greenlit the issuance of equity shares on a rights basis, with an allocated fund of up to Rs 300 crore. However, during the Rights Issue Committee's meeting on February 2, the size of the issue was revised downwards.

The renewable energy company, which develops, owns, and operates a portfolio of wind farms in India and Europe, has been in focus due to Budget 2023 wherein FM allocated significant resources to bolster the green energy sector, with a focus on harnessing India's vast offshore wind energy potential.

Shares of Orient Green Power have jumped 15 percent in the last three days, hitting 5 percent upper circuit for 3 straight sessions. In the last one year, the stock has surged over 240 percent, outperforming the benchmark Nifty 50 which has risen 22 percent during this period.

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Earlier on February 1, the company informed that the board of its wholly-owned subsidiary Delta Renewable Energy has approved to develop Solar Energy Capacity in two Phases.

Phase I includes a 19.8 MW Solar Power Project and Phase II comprises a 19.8 MW Solar Power Project in the state of Tamil Nadu. Both projects are proposed to be developed through an EPC Contractor.

For the quarter ended September 2023, Orient Green Power Company reported an over two-fold jump in its consolidated net profit to Rs 75 crore. The company's total income surged to Rs 124.10 crore from Rs 108.24 crore in the year-ago quarter.

The company's expenses stood at Rs 62.36 crore in the quarter under review. Orient Green Power is slated to report its December quarter earnings on February 14, 2024.

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The state-run LIC is one of the investors in Orient Green Power Company. According to Trendlyne data, LIC holds 15,459,306 equity shares or 1.6 percent stake in the company as of the December 2023 quarter.

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