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ACME Solar jumps 10% as subsidiary secures ₹3,753 cr loan

Stocks
2 min Read Nov 18, 2024
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Shares of ACME Solar Holdings, a prominent name in renewable energy, surged by 10% to hit the upper circuit at ₹251.90 on November 18, 2024. The rally came after its subsidiary, ACME Sun Power Private Limited, secured a ₹3,753 crore term loan from REC Limited for a 320 MW Firm and Dispatchable Renewable Energy (FDRE) project.

A bright turnaround for ACME Solar holdings

Despite a weak debut on stock exchanges earlier this year, ACME Solar Holdings is regaining investor confidence. The stock, which opened at ₹259 per share on the BSE and ₹251 on the NSE, initially dropped below its IPO allotment price of ₹289. However, Monday's upper limit performance has reignited interest among those looking to invest in stocks with a focus on sustainable energy.

The secured loan will fund renewable projects across solar-rich Jaisalmer, Rajasthan, and wind-power sites in Bhuj and Jam Khambhaliya, Gujarat. The collaboration with SJVN and grid connectivity arrangements highlight ACME Solar's robust planning.

Why renewable energy stocks are gaining traction

The renewable energy sector is seeing a surge in investments, with government policies aligning toward a green transition. ACME Solar's leadership, backed by experienced execution capabilities, has attracted REC Limited as its sole lender. Investors keen to invest in stocks tied to long-term sustainable energy solutions might see this as a golden opportunity.

Chairman Manoj Kumar Upadhyay remarked, "This funding reinforces the trust of our lenders and strengthens our commitment to world-class renewable projects." ACME Solar Holdings' dedication to leveraging high-resource areas for solar and wind energy is a testament to its forward-thinking strategy.

Listing challenges and prospects

While the IPO debut was underwhelming, the current performance suggests that ACME Solar's market standing is on the mend. As the renewable energy sector gains momentum globally, this company remains a strong candidate for those aiming to invest in stocks with sustainable growth potential.

Key takeaways

  • Strong market move: ACME Solar Holdings hit a 10% upper circuit at ₹251.90, reflecting growing investor interest.

  • Secured loan: The ₹3,753 crore loan from REC Limited will fund a 320 MW FDRE project in key renewable energy zones.

  • Sustainable investment appeal: ACME Solar's focus on long-term renewable energy aligns with the government's green energy goals, making it a strong stock to watch.

Investors seeking to expand their portfolios may find ACME Solar Holdings an attractive option amidst India's push for renewable energy advancements.