Orient Green Power Company (OGPL) launches a ₹250 crore rights issue to expand its solar capacity, reduce debt, and upgrade windmill components, aiming for 1 GW installed capacity.
Orient Green Power Company (OGPL) is expanding its presence in the renewable energy sector. The company aims to achieve an installed capacity of 1 GW by utilising a hybrid model of wind and solar capacities.
OGPL also plans to support this expansion by launching another rights issue, with the goal of raising Rs 250 crore. This funding will be used to enter the solar market and reduce existing debts.
The company has also established a Debt Service Reserve Account (DSRA) of about Rs 69 crore, strengthening its liquidity position.
OGPL’s subsidiary, Delta Renewable Energy Private Limited, is set to develop a solar capacity of 39.6 MW in two phases, each comprising 19.8 MW. The first phase will be financed by the proceeds from the rights issue, while the second phase will be funded through the debt. This strategic move underscores the company’s commitment to expanding its presence in the solar industry.
OGPL’s instalment capacity stands at 402.3 MW of wind power plants across various states in India and Europe. In line with the growth strategy, the company has initiated component upgrades on selected windmills, which are expected to be completed in the next fiscal year. These upgrades are expected to enhance power generation in the future.
In FY24, OGPL refinanced over Rs 780 crore of secured borrowings at lower interest rates, approximately 300 basis points lower than before. Additionally, proceeds from the rights issue were used to repay promoter loans amounting to Rs 170 crore, significantly reducing the company’s debt burden.
As of these initiatives, OGPL’s debt decreased to RS 767 crore in FY24, down from Rs 1078 crore in FY23 and Rs 1,351 crore in FY20.
According to KS Sripathi, Chairman of OGPL, this expansion sets the stage for the company’s future growth. OGPL is also exploring hybrid models that combine wind and solar energy to enhance its presence further and achieve its targeted installed capacity of 1 GW in the coming years.
