This Renewable Energy Company Started As A Penny Stock But Now Giving Great Returns

Renewable energy is witnessing a global surge in demand as natural resources deplete, prompting numerous companies to pivot towards sustainable practices. In India, major players like Tata Power and Suzlon Energy dominate the renewable energy sector, but a small-cap company, Orient Green Power, is making significant strides, experiencing a remarkable 1,000-per-cent surge in its shares over the past three years. In 2023 alone, the company’s stock has yielded impressive returns, soaring by approximately 100 per cent.

The renewable energy stock is in focus as recently its board of directors approved a rights issue of equity shares to raise funds between Rs 250 crore to Rs 300 crore. In a filing to the stock exchanges last week, Orient Green Power said that its board approved the proposed fund raising through an issuance of equity shares of face value of Rs 10 each to eligible shareholders.

Companies launch rights issue to raise funds by allowing shareholders to purchase extra shares in proportions to their existing shareholding at a discounted price.

Notably, Orient Green Power stands out as one of the few companies to secure investment from the Life Insurance Corporation of India (LIC), with LIC holding a 1.6 per cent stake in the company. As of the data available until the September quarter, the promoters’ stake in the company stands at 32.48 per cent, while non-institutional investors hold a majority share of 63.96 per cent.

Orient Green Power’s journey from a penny stock to delivering substantial returns has been remarkable. From a modest Rs 2.26 on December 28, 2020, the share price has surged to Rs 21.35, underscoring its impressive growth trajectory. Notably, an investment of Rs 1 lakh in Orient Green Power shares made at the end of 2020 would now be valued at Rs 10 lakh, showcasing the remarkable wealth creation potential.

Shares of Orient Green Power have surged more than 93 per cent in the last one year. The stock has given a return of 57% in the last three months. However, in the last one-month period the stock has dropped more than 6 per cent.

As the global push for renewable energy intensifies, companies like Orient Green Power are emerging not only as sustainability champions but also as lucrative investment opportunities, attracting attention with their impressive financial performance and growth potential.