KPI Green Energy plans to raise up to Rs 300 crore through a qualified institutional placement (QIP), the company's CMD Faruk Patel told CNBC-TV18.

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The QIP proceeds will be used to fund a 240-megawatt (MW) project worth roughly Rs 900 crore, awarded by the Gujarat government, Patel said in an interview with CNBC-TV18.

The company's board is scheduled to discuss the QIP on October 11, 2023.

The QIP process is likely to be completed over the next three months, he said.

Patel said the company currently has a debt of approximately Rs 550 crore, and it intends to acquire an additional Rs 550 crore in debt to finance the project. This would result in a total debt of Rs 1,100 crore and a debt-to-equity ratio of 2:1.

Also Read | KPI Green Energy secures 9.70 MW solar power project orders

Patel also pointed to the benefits for the company from the new renewable energy policy introduced by the Gujarat government on October 4, 2023.

“In this policy, all the renewable sources will be in one parity like wind, biogas, or solar. Because of this people will move on to renewable energy,” he said.

Also Read | KPI Green Energy to work with Maharashtra government undertaking on renewable energy projects

He said the company currently has a project order pipeline of nearly 540-megawatt (MW).

Shares of the company closed close to 3.8% higher at Rs 910 per share on the BSE on October 10. The shares gained after the company reported a 57% jump in consolidated profit-after-tax (PAT) year-on-year (YoY) to Rs 34 crore for Q2FY24.

The company also approved an interim dividend of 2.5% per equity share (Rs 0.25 per share). The record date for the dividend is October 20, 2023.

The company's stock has gained nearly 115% year-to-date (YTD), as against a 7% rise in the benchmark Sensex.

KPI Green Energy operates within the renewable energy sector in Gujarat, primarily focusing on third-party sales. Its core activities involve the development and maintenance of grid-connected independent power producer (IPP) renewable energy projects.

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(Edited by : Shweta Mungre)