Websol Energy approves splitting each share into 10

Websol Energy approves splitting each share into 10

Websol Energy System, a prominent manufacturer of solar cells and modules, has announced a significant strategic move to enhance its stock's accessibility and liquidity. The company's board has approved a 1-for-10 stock split, which will transform the face value of its equity shares from Rs 10 to Rs 1 [1]. This decision follows the company's remarkable 6,000% return over the past five years and aims to make the stock more affordable for retail investors.

The stock split, scheduled to be completed by October 2025, pending shareholder approval at the upcoming annual general meeting, will not alter the company's overall market capitalization or an investor's total holding value. Websol Energy, a small-cap company with a market capitalization of Rs 5,463 crore, has been a reliable producer of photovoltaic crystalline solar cells and modules, serving both commercial and industrial applications in India and globally [1].

In addition to the stock split, the board has approved a substantial expansion plan. The company plans to boost its solar cell and module capacity by 4 gigawatts (GW) in two phases. The first phase, Phase III, is targeted for completion by June 2027, followed by Phase IV by June 2028. The total investment for this expansion is approximately Rs 3,000 crore, to be financed through a combination of bank loans, equity, and internal funds [1].

Websol Energy's expansion plan is driven by the growing demand for solar energy in India and beyond. The company aims to meet this demand by increasing its production capacity significantly. The new subsidiary, "Websol Renewables," will be incorporated to support the next phase of expansion [1].

The board meeting also resulted in a change in the company's management. Abhijit Majumdar, a practicing company secretary, has been appointed as the Secretarial Auditor for five years starting from the 2025-26 financial year [1].

References:
[1] https://economictimes.indiatimes.com/markets/stocks/news/smallcap-company-with-6000-return-in-5-years-announces-110-stock-split-check-details/articleshow/123636137.cms