Insolation Energy: In less than a year, this small-cap stock returned 420%; skyrocketed 997% from its IPO price

Small and medium enterprises (SMEs) have gained significant attention and interest from investors. Many of these SMEs, which have gone public in the past year, have experienced an overwhelmingly positive response from retail and non-institutional investors.

This enthusiastic reception from investors has translated into robust subscription rates during their initial public offerings (IPOs). Consequently, these SME stocks have made their market debuts with substantial premiums, surpassing their issue prices by a considerable margin.

Insolation Energy was one such SME stock which saw its shares rally phenomenally since listing. The shares, which were listed in October last year at a price of ₹76 apiece have experienced a staggering run to date, generating a massive return of 420%. From the IPO price of ₹36, the shares are currently up by 997% to ₹395. 

The company's market capitalization stood at ₹166 crore when it was listed. As of date, the market capitalization has grown to ₹808 crore.

Insolation Energy is engaged in the business of manufacturing solar panels and modules of high efficiency of various sizes from its fully automatic state-of-the-art 200 MW SPV Module manufacturing unit located at Jaipur.

In addition to the manufacture of solar PV modules, the company also trades in solar power conditioning Unit (PCU), which uses solar energy and power from the grid to charge batteries, and tall tabular lead acid batteries, which are used to store energy generated from the solar panels.

The company is also an integrated solar energy solutions provider, offering engineering, procurement, and construction (“EPC”) services to its customers.

The solar PV panels market's is valued at $157.75 billion in 2022, it is projected to expand at a compound annual growth rate (CAGR) of 7.8% from 2023 to 2030. This remarkable expansion is driven by the increasing demand for clean, renewable electricity, coupled with government policies offering tax rebates and incentives to incentivize solar panel installation.

Insolation Energy stands at the forefront of this revolution, ready to contribute to the global shift towards cleaner energy sources, the company said in its FY23 annual report.

In a recent exchange filing, the company announced that its wholly owned subsidiary, Insolation Green Energy has commenced commercial production of 600 MW of solar capacity. With this addition, the company's total operating capacity has reached 750 MW.

Furthermore, there are plans to expand Insolation Green's capabilities by adding another production line before the end of the calendar year, aiming to increase the overall capacity to 950 MW, the company added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie. We advise investors to check with certified experts before making any investment decisions.