Ujaas Energy Approves Plan To Raise Up To Rs 500 Crore And Announces 1:4 Bonus Share Distribution

Ujaas Energy Ltd is engaged in generation of solar power and manufacturing, sales and services of solar power plants/projects and manufacturing and sales of Electric Vehicle. Ujaas Energy Ltd. has announced significant plans to raise funds and reward shareholders through a bonus share issue. These strategic moves, approved by the company’s board, aim to bolster the company’s financial position and enhance shareholder value.

Fundraising Initiatives

On Monday, Ujaas Energy Ltd. approved a proposal to raise up to Rs 500 crore through various financial instruments, including qualified institutional placement, follow-on public offer, global depository receipts, or rights issues. This fundraising initiative is subject to shareholder approval in the upcoming annual general meeting (AGM), as stated in the company’s exchange filing. Additionally, the board has approved a resolution to borrow up to Rs 1,000 crore to support the company’s growth and operational needs.

Bonus Share Issue and Director Reappointment

The board of directors has also approved the issuance of bonus shares in the ratio of 1:4 i.e. one new, fully paid-up share for every four existing fully paid-up shares held by shareholders. This bonus issue is contingent on shareholder approval in the AGM and will be executed within two months from the date of board approval. Furthermore, the company has proposed the reappointment of Vikalp Mundra as director, pending shareholder approval during the AGM.

Conclusion: Ujaas Energy Ltd.’s recent board decisions underscore its commitment to strengthening its financial foundation and rewarding its shareholders. The proposed fundraising and bonus share issuance, along with strategic leadership appointments, are poised to drive the company’s growth and enhance shareholder value. Ujaas Energy Ltd.’s stock surged by 5% today, hitting the upper circuit limit at Rs. 288.77 per share amid the company’s strategic fundraising and bonus share plans. Over the past month, the stock has gained more than 21%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions