ACME Solar Holdings Ltd. experienced a 2% drop in its share price from the day's high on Thursday, despite announcing a significant financial boost. The renewable energy company secured Rs 1,571 crore in long-term project funding from India Infrastructure Finance Company Ltd (IIFCL) for a new venture in Rajasthan.
Funding Bolsters Rajasthan Renewable Project
The substantial funding from IIFCL is earmarked for the construction and development of ACME Renewtech Sixth, a 300 MW assured peak power project located entirely within Rajasthan. IIFCL will act as the sole lender for this initiative, providing a repayment tenor of 19 years. This latest financial injection brings ACME Solar's total financing secured for the current fiscal year to an impressive Rs 10,976 crore.
The project is underpinned by a 25-year power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) at a tariff of Rs 6.28 per unit. It integrates solar generation with a robust 1,350 MWh battery energy storage system (BESS) to ensure assured peak power supply and meet its PPA obligations. With a total capital expenditure projected at Rs 2,123 crore, this project is a key component of ACME Solar's broader battery-storage capital deployment strategy for the current financial year. Grid connectivity is already operational, and essential infrastructure like the pooling substation and dedicated transmission line are nearing completion, with land acquisition substantially secured.
Stock Performance and Recent Developments
Despite the positive news of ACME Solar project funding, the company's stock opened at Rs 398.85 before falling 1.89% to Rs 391.30, marking the third consecutive day of decline. Approximately 37,000 lakh shares traded on the BSE, significantly higher than its two-week average volumes of 1.40 lakh shares. However, it's worth noting that the stock has still seen a substantial rally of 64.42% year-to-date.
This market reaction follows another recent announcement where ACME Solar informed stock exchanges about its wholly-owned subsidiary, ACME Marigold Urja, executing a PPA with Northeast Frontier Railway (NFR) for a 130 MW Round the Clock (RTC) renewable energy project. Additionally, the company emerged as a successful bidder in SECI's e-reverse auction for the selection of RE Power Developers for assured peak supply.
ACME Solar emphasized Rajasthan's growing importance as a hub for its hybrid renewable capacity. The company boasts a diversified portfolio exceeding 8,370 MW, encompassing solar, wind, storage, and various hybrid renewable energy solutions.