Ujaas Energy Powers Up: ₹5 Billion Fundraising Plan and Bonus Share Issue Signal Strategic Shift

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Ujaas Energy Ltd., a key player in India’s renewable energy and electric mobility space, has announced a dual-pronged capital strategy that includes raising up to ₹5 billion and issuing bonus shares to shareholders. These moves come as the company prepares for its 26th Annual General Meeting and aims to meet regulatory norms while fueling future growth. The announcements reflect Ujaas Energy’s renewed focus on financial agility, shareholder engagement, and operational expansion in the solar and EV segments.

The Board of Directors is scheduled to meet on August 26, 2025, to finalize the bonus share ratio and approve the fundraising modalities. These developments are expected to reshape the company’s capital structure and enhance its market visibility.

Key Highlights from the Board Agenda

Ujaas Energy plans to raise up to ₹5 billion through a combination of equity and debt instruments

The company will issue bonus shares to public shareholders in a specified ratio, to be confirmed during the board meeting

The bonus issue is aimed at meeting minimum public shareholding norms under SEBI and Securities Contracts (Regulation) Rules

The board will also finalize the date and venue for the 26th Annual General Meeting and approve the draft AGM notice

Fundraising Strategy: Capital for Growth and Diversification

Purp0se and Allocation

The ₹5 billion fundraising initiative will support expansion in solar EPC projects, electric vehicle infrastructure, and working capital needs
A portion of the funds may be earmarked for strategic acquisitions and technology upgrades in battery storage and EV charging

Instruments Under Consideration

The board is likely to explore a mix of qualified institutional placements (QIP), rights issues, and convertible debentures
Debt instruments may include green bonds or sustainability-linked loans to align with ESG goals

Market Timing and Sentiment

With Ujaas Energy’s share price up 3.68 percent to ₹366.65 as of August 21, 2025, investor sentiment appears supportive of capital infusion
The company’s market capitalization stands at ₹4,074.68 crore, ranking 10th in the electric/electronics sector

Bonus Share Issue: Enhancing Liquidity and Compliance

The bonus share proposal is designed to:

Increase retail investor participation by reducing the effective share price
Comply with SEBI’s minimum public shareholding norms, which mandate a 25 percent public float for listed entities
Reward long-term shareholders and improve stock liquidity

The bonus ratio will be disclosed post board approval, but early indications suggest a 1:2 or 1:3 ratio may be under consideration3

The allotment of bonus shares will be followed by necessary filings with stock exchanges and regulatory bodies, ensuring transparency and compliance

Governance and AGM Preparations

Annual General Meeting

The board will finalize the date, time, and venue for the 26th AGM, where shareholders will review financials, strategic plans, and corporate governance matters
The AGM notice will include resolutions on fundraising, bonus issue, and director appointments

Board’s Report and Disclosures

Directors will review the draft Board’s Report, which outlines operational highlights, financial performance, and regulatory compliance for FY25
The report will be presented to shareholders during the AGM and published on the company’s website thereafter

Strategic Outlook and Sector Positioning

Ujaas Energy continues to focus on solar power generation, EPC services, and electric vehicle solutions

The company’s diversification into EV manufacturing and charging infrastructure aligns with India’s green mobility goals

With rising demand for clean energy and supportive policy frameworks, Ujaas is well-positioned to scale operations and attract institutional capital

Conclusion

Ujaas Energy’s twin announcements—₹5 billion fundraising and a bonus share issue—underscore its strategic intent to strengthen its financial base while rewarding shareholders. As the company prepares for its AGM and regulatory compliance, these moves are expected to enhance investor confidence, improve liquidity, and support long-term growth in India’s clean energy transition.

Sources: Business Standard, Angel One, Moneycontrol, Economic Times