Orient Green Power Company Limited (OGPCL) has announced a significant development involving one of its promoters. Janati Bio Power Private Limited, a key promoter of OGPCL, has pledged 1 crore shares, representing 0.85% of the company's total share capital, to secure a loan facility from SPV Finserve Private Limited.

Details of the Pledge

The pledge transaction, which took place on August 22, marks an increase in the encumbered shares held by Janati Bio Power. Prior to this event, the promoter already had 1 crore shares pledged. With the addition of another 1 crore shares, the total number of encumbered shares has now reached 2 crore, accounting for 1.70% of OGPCL's total share capital.

Promoter's Stake

Janati Bio Power Private Limited holds a substantial stake in Orient Green Power Company Limited. The promoter owns 28,59,52,084 shares, which represents 24.38% of the company's total share capital. This recent pledge affects a portion of their holdings but does not significantly alter their overall ownership percentage in the company.

Regulatory Compliance

In compliance with the Securities and Exchange Board of India (SEBI) regulations on substantial acquisition of shares and takeovers, Orient Green Power Company Limited has made the necessary disclosures to the stock exchanges. The company's Company Secretary and Compliance Officer, G Srinivasa Ramanujan, filed the intimation on August 25, ensuring transparency in the transaction.

Market Implications

While the pledge of shares by a promoter can sometimes raise concerns among investors, it's important to note that such transactions are common in the business world, often used to raise capital for various purposes. The impact of this development on Orient Green Power's stock price and investor sentiment remains to be seen.

Orient Green Power Company Limited continues to be listed on both the BSE Limited and the National Stock Exchange of India Limited. Investors and market watchers will likely keep a close eye on any further developments or disclosures from the company regarding this pledge and its potential implications for the company's operations and financial strategy.

Orient Green Power Company Limited (OGPCL) has reported a stellar performance for the first quarter, with net profit soaring 446% year-on-year to Rs. 28.85 crores. The renewable energy company's total income rose by 38.6% to Rs. 93.17 crores, driven by improved wind conditions and enhanced operational efficiency.

Strong Financial Performance

The company's EBITDA grew by 46.4% to Rs. 65.92 crores, with the EBITDA margin expanding to 70.75%. This robust financial performance reflects the strength of OGPCL's operating portfolio and the benefits of its financial prudence.

T. Shivaraman, Managing Director and CEO of Orient Green Power, attributed the growth to a combination of internal and external factors. "We have completed component upgradation in a number of our wind turbines which were down for a couple of years. Almost all of them are currently online and have contributed significantly to generation this quarter," he stated.

Improved Power Generation

OGPCL generated 12.46 crore units of power during the quarter, compared to 9.5 crore units in the previous year. This increase was due to:

• Improved wind conditions, accounting for about 2 crore additional units
• Enhanced machine availability contributing approximately 1 crore unit

Debt Reduction and Financial Management

The company's finance costs declined by over 15% during the quarter, thanks to timely debt repayment and improved credit ratings. OGPCL plans to:

• Repay approximately Rs. 100 crores of debt
• Reduce interest rates from the current 9.25% to 8.75%

Expansion Plans

Orient Green Power is actively pursuing expansion opportunities to reach its target of 1 GW capacity over the next couple of years. The company's current projects include:

• A 7 MW AC solar project in Tamil Nadu, expected to be commissioned by November or December
• An 18 MW project in the final stages of contract awarding

Shivaraman highlighted the company's focus on repowering existing assets and potential acquisitions. "We are in serious discussions on quite a few inorganic acquisitions as well as implementing certain repowering projects on our existing assets," he said.

Future Outlook

With favorable wind conditions expected to continue through Q2 and the upcoming commissioning of its solar projects, OGPCL anticipates delivering improved results in the coming quarters. The company is also exploring energy storage solutions, although current battery costs make large-scale implementation challenging without subsidies.

As Orient Green Power Company Limited continues to capitalize on the growing demand for renewable energy in India, it remains focused on creating long-term value for its shareholders through strategic expansion and operational excellence.