Shares of WAA Solar surged sharply, rallying nearly 40% over the past two trading sessions, after the company informed exchanges that it has received multiple Letters of Award (LoAs) worth around Rs 225 crore for solar power projects in Madhya Pradesh.
In a regulatory filing dated December 29, WAA Solar said the LoAs were awarded by Madhya Pradesh Urja Vikas Nigam Limited (MPUVNL), a Government of Madhya Pradesh enterprise. The projects involve the implementation of grid-connected solar photovoltaic power plants under the Surya Mitra Krishi Feeders Scheme, with feeder solarisation being carried out as part of the PM KUSUM-C scheme.
According to the disclosure, the power generated from these solar plants will be sold to Madhya Pradesh Power Management Company Limited (MPPMCL). The total estimated consideration of the contracts stands at approximately Rs 225 crore, and the projects are required to be executed within 18 months from the date of signing of the Power Purchase Agreement (PPA).
The company also clarified that the contracts are domestic in nature and that neither the promoters nor the promoter group have any interest in the awarding entity. It further stated that the transaction does not fall under the category of related-party transactions. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Background
WAA Solar operates in the renewable energy segment, with a focus on solar power generation and project execution. The PM KUSUM-C scheme aims to promote feeder-level solarisation to ensure reliable daytime electricity for agricultural consumers while reducing reliance on conventional power sources. MPUVNL acts as the nodal agency for renewable energy development in Madhya Pradesh and regularly awards solar projects under various central and state government initiatives.
The latest LoAs have significantly boosted investor sentiment, leading to the sharp move in WAA Solar’s stock price over the last two sessions.
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