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Orient Green Power Company (OGPL) is set to expand its renewable energy footprint, aiming for an installed capacity of 1 GW through a hybrid model of wind and solar projects. To support this expansion, OGPL plans to launch a rights issue to raise ?250 crore, which will primarily fund its entry into the solar market and help reduce existing debt. Last year, OGPL successfully raised approximately ?230 crore through a similar rights issue. OGPLs subsidiary, Delta Renewable Energy Private Limited, will develop a 39.6 MW solar capacity project in two phases, each comprising 19.8 MW. The first phase will be financed by the proceeds from the upcoming rights issue, while the second phase will be funded through debt. “This strategic move sets the stage for our expansion in the solar industry,” stated KS Sripathi, Chairman of OGPL, in the company’s annual report. “Additionally, we are exploring hybrid models combining wind and solar to further enhance our presence and reach our targeted installed capacity of 1 GW in the years ahead,” he added. As of March 31, 2024, OGPL’s installed capacity stood at 402.3 MW of wind power plants across Tamil Nadu, Andhra Pradesh, Gujarat, Karnataka, and Europe. In line with its growth strategy, OGPL has initiated component upgrades on selected windmills, expected to be completed in the next fiscal year, which should enhance future power generation. In FY24, OGPL refinanced over ?780 crore of secured borrowings at interest rates approximately 300 basis points lower. Additionally, promoter loans amounting to ?170 crore were repaid using the rights issue proceeds, significantly reducing the company’s debt burden. Consequently, OGPL’s debt decreased to ?767 crore in FY24, down from ?1,078 crore in FY23 and ?1,351 crore in FY20. The company also established a Debt Service Reserve Account (DSRA) of about ?69 crore, bolstering its liquidity position. |
