ACME Solar hits the roof after securing Rs 2,491 cr refinancing project

ACME Solar Holdings hit an upper circuit of 5% at Rs 201.90 after the company announced that it has secured a long-term project finance facility worth Rs 2,491 crore.

The financing initiative aims to support a project life of 18 to 20 years, focusing on refinancing existing debt facilities and reducing financing costs for the company's 490 MW operational renewable energy projects across Andhra Pradesh, Rajasthan, and Punjab.

This refinancing of state counterparty projects has been secured from the State Bank of India (SBI) and Rural Electrification Corporation (REC) at a reduced weighted average interest rate of 8.8%. This strategic move has improved the credit profile and secured a higher credit rating for the Andhra Pradesh and Punjab entities under a co-obligor structure.

This move aligns with the group's objective of achieving a credit rating upgrade and reducing overall interest costs for all operational projects. The Andhra Pradesh (160 MW) and Punjab (30 MW) projects have an operational track record of approximately nine years, while the Rajasthan project (300 MW) has been operational for around three years.

ACME Solar Holdings is at the forefront of Indias transition to clean energy, with an operational capacity of 2,540 MW and a robust target of reaching 6,970 MW within the next three years.

Purushottam Kejriwal, chief financial officer of ACME Solar Holdings, said, The refinancing initiative aligns with our strategy to create an efficient capital structure while consistently reducing cost of debt. We have been able to improve our projects credit ratings by demonstrating our commitment to financial discipline and stability. The reduced cost of debt enables us to further strengthen our financial position as we pursue capacity growth over the next three years.

ACME Solar Holdings (ACML) is a renewable power generation company in India with a portfolio of solar, wind, hybrid and FDRE (firm and dispatchable renewable energy) projects.

The companys consolidated net profit surged 152.14% to Rs 112.05 crore in Q3 FY25 as compared with Rs 44.44 crore in Q3 FY24. Revenue from operations increased 5.24% YoY to Rs 349.01 crore during the quarter.

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