Solar stocks shine bright as PM Modi launches Pradhanmantri Suryodaya Yojana

Solar-related stocks defied gravity on Tuesday after Prime Minister Narendra Modi said just after the consecration ceremony of Ram Temple in Ayodhya on Monday that the government will launch “Pradhanmantri Suryodaya Yojana” with the target of installing rooftop solar on 1 crore houses.

Following the development, shares of including Borosil Renewables traded 12 per cent higher at Rs 568.30 in the afternoon trade at around 1.05 pm (IST). Waaree Renewable Technologies hit upper circuit of 5 per cent. Borosil Renewables is engaged in the business of manufacturing of patterned glass and low iron solar glass for application in photovoltaic (PV) panels, flat plate collectors and greenhouses. On the other hand, Waaree Renewable is primarily in the business of renewable energy solutions, with a specific focus on solar power.

The benchmark BSE Sensex traded 624 points, or 0.87 per cent, lower at 70,799 at around the same time. The broader indices including the BSE Midcap and BSE Smallcap indices were down over 2 per cent and 1.60 per cent, respectively.

Websol Energy System, which is engaged in the manufacturing of solar cells and modules, also hit upper circuit of 10 per cent on Tuesday. Likewise, Gita Renewable Energy, which is engaged in operation and maintenance of solar power plants, also hit upper circuit of 5 per cent on January 23.

“All the devotees of the world always get energy from the light of Suryavanshi Lord Shri Ram,” PM Modi said in a tweet.

“Today, on the auspicious occasion of consecration in Ayodhya, my resolution got further strengthened that the people of India should have their own solar rooftop system on the roof of their houses. The first decision I have taken after returning from Ayodhya is that our government will launch ‘Pradhanmantri Suryodaya Yojana’ with the target of installing rooftop solar on 1 crore houses,” the Prime Minister said.

Shares of Waa Solar, which is engaged in the business of solar power generation, also traded 4.57 per cent higher at Rs 170.33 in the afternoon trade. KPI Green Energy was up 4.18 per cent at Rs 1,495.40. KPI Green Energy is primarily engaged in the development, construction, operations and maintenance of solar power projects.

Of late, Mumbai-based Rays Power Infra , one of the leading integrated solar power companies in India with implementation of solar power projects of 1,207 mega-watts peak has also filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi to raise funds through for its initial public offering (IPO).

The IPO with a face value of Rs 10 comprises of fresh issue of equity shares up to Rs 300 crore and an offer for sale (OFS) of up to 2.99 million shares by promoter selling shareholders.

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