ACME Solar Shares Surge Nearly 10% To Hit Upper Circuit After Subsidiary Secures Loan From REC For Renewable Energy Projects

The shares of ACME Solar Holdings on Monday (November 18) surged by nearly per cent, hitting their upper circuit limit at Rs 251.90 on the BSE. The sudden and significant increase in the company’s shares was followed by the news that its subsidiary, ACME Sun Power Private Limited, secured a substantial Rs 3,753 crore loan from REC Limited.

This funding will be used to develop and construct Firm and Dispatchable Renewable Energy (FDRE) projects in Rajasthan and Gujarat.

Share performance

The shares of the company today opened at Rs 236.00 and peaking at Rs 251.70 before 1:38 pm IST. Despite trading near its 52-week low of Rs 227.85 just recently. The surge places it closer to its 52-week high of Rs 276.10.

Details of the Loan and Project Plans

The Rs 3,753 crore term loan from REC Limited point out a positive momentum in ACME Solar’s capabilities. ACME Sun Power’s project will establish 320 MW of renewable energy infrastructure, combining both solar and wind power. The solar capacity will be located in Jaisalmer, Rajasthan, known for its high solar resource potential.

Meanwhile, the wind sites are set to be developed in Bhuj and Jam Khambhaliya, Gujarat.

A Power Purchase Agreement (PPA) has already been signed with SJVN, highlighting that the generated power has a buyer. In addition to it, the project’s grid connectivity has been secured, and land acquisition is in its advanced stages.

This partnership also follow up a similar instance where ACME Surya Power Private Limited, another subsidiary, received project financing from REC Limited for a 250 MW FDRE project.

Manoj Kumar Upadhyay, Chairman and Founder of ACME Solar Holdings Limited, expressed gratitude for REC Limited’s support, stating, “We are delighted to receive this financial assistance, which reinforces the trust and confidence of our lenders. This funding is a significant step in strengthening our commitment to building world-class FDRE renewable energy projects and contributing to India’s green energy transition.”