KPI Green Energy Ltd shares dropped nearly 5% on Tuesday as the solar energy company launched an issue of shares to qualified institutional investors to raise an estimated ₹300 crore.
The company in an exchange filing stated that its board in a meeting on Monday, December 18, approved the opening of the Qualified Institutions Placement (QIP) issue.
The company board approved the floor price at ₹1,245 per equity share for the QIP issue, which was at around a 10% discount to the closing price of ₹1,379.90 on Monday.
The company’s board in its meeting held on September 1, had approved the proposal to launch a QIP issue to raise up to ₹300 crore. Since then the stock has rallied around 58% and it hit a 52-week high of ₹1,413.70 on December 13.
KPI Green in a separate filing on Monday stated that its board will meet on Thursday, December 21, to consider and determine the issue price equity shares to be issued pursuant to the QIP.
It will also consider a proposal to include any discount on the floor price of the QIP issue.
Sources said the issue price could be fixed at ₹1,183 per share against the floor price of ₹1,245 per equity share.
Surat-based KPI Green Energy is a leading player in the solar energy sector. The company develops, builds, owns, operates and maintains solar power projects.
KPI Green’s CMD Faruk Patel in October told CNBC-TV18 that KPI Green would raise around ₹300 crore to finance a 240-MW project awarded by the Gujarat government.
He had said that KPI had a debt of around ₹550 crore and it was looking to acquire an additional ₹550 crore in debt to finance the project worth roughly ₹900 crore. This would result in a total debt of ₹1,100 crore and a debt-to-equity ratio of 2:1, he had said.
KPI Green shares were trading 3.47% lower at ₹1331.95 apiece on BSE at 10.14am.