There is a surge of 10% in the shares of this solar energy company due to getting new contracts, get complete information.

Insolation Energy Ltd Wins New Contract in Rajasthan, Sending Its Shares Up More Than 10%

Shares of Insolation Energy Ltd (INA Solar), a leading solar panel manufacturer in India, surged approximately 10.2% on the BSE during Wednesday’s trading session, reaching ₹3,654.5. This spike followed the announcement of a ₹500.5 crore contract with Rajasthan Renewable Energy Corporation Limited (RREC), boosting the company’s market capitalization to ₹7,364.3 crore.

Details of the New Project

The ₹500.5 crore contract marks the largest for Insolation Energy, focusing on designing, supplying, installing, testing, and commissioning rooftop solar photovoltaic systems across government buildings in Ajmer, Jaipur, and Kota, with a total capacity of 77 MW. This project is expected to be completed within 18 months and includes a 25-year operation and maintenance agreement.

Company’s Expansion Plans

Insolation Energy’s board has approved the issuance of equity shares worth approximately ₹402.2 crore, with additional orders for solar photovoltaic modules. The company aims to enhance solar module production by 3 GW, targeting a total capacity of 4 GW, and plans to establish 1.5 GW of cell manufacturing capacity next year. This growth trajectory could lead to revenues exceeding $1 billion within three years.

Company Financial Performance

Insolation Energy has demonstrated impressive financial growth, with a 164.2% increase in revenue from ₹279 crore to ₹737 crore in FY24. The company’s return on equity (RoE) stands at 68.5%, reflecting its strong position in India’s renewable energy market.