On Tuesday, December 17, after landing a sizable order for solar pumps, shares of RMC Switchgears were stuck in the 5% upper circuit limit for the second day in a row, hitting a new all-time high of ₹1,159.65 per share.
A renowned system integrator has granted the company a Letter of Acceptance (LOA) to supply, install, and commission 5,000 solar pumps in Maharashtra, the company said to investors in an exchange filing on Monday. The LOA, which is expected to be completed in FY25–26 and has a value of ₹90 crore, contains 3HP, 5HP, and 7HP solar pump systems.
With the support of a ₹100 billion investment to revolutionize the agriculture industry, Maharashtra has set a goal of installing 1.5 million solar pumps as part of its aggressive clean energy campaign. With more than 100,000 solar pumps in place, the state program shows the industry has enormous growth potential.
Commenting on the development, Ankit Agrawal, CEO and Whole-Time Director of RMC Switchgears Limited, said, “This LOA is a significant milestone for RMC’s solar-based EPC business, showcasing our capabilities in delivering real-world solar solutions and aligning with Maharashtra’s clean energy ambitions.”
“It reinforces the strategic rationale behind our investment in solar module manufacturing, enabling us to efficiently execute projects and contribute to the nation’s renewable energy objectives. As we continue to expand our portfolio, this project represents another step forward in achieving our ‘Vision-2030’ goals,” Agrawal added.
The declaration comes after RMC recently invested ₹100 crore to build a cutting-edge solar module manufacturing facility in Jaipur, Rajasthan. This backward integration approach aims to lessen dependency on outside vendors while meeting the rising demand for solar modules in major projects like this solar pump project.
A careful combination of debt, equity, and internal accruals will be used to finance the project’s capital expenditures, highlighting RMC’s methodical financial approach. According to the company’s regulatory filing, both plants are anticipated to be operational by July 2025, with commercial revenues starting in August 2025.
From their June 2022 low of ₹22.50 a share to the present market price of ₹1,159, the company’s shares have continuously increased in value, yielding an astounding return of around 5051%. An investment of ₹1 lakh would have grown to over ₹51.50 lakh over this time.
The stock recovered well after a period of collapse from CY18 to CY20, which caused investors’ wealth to drop by 75%. CY21 saw a strong return of 45%, and the following years saw exceptional gains of 1,039% and 243%. The stock has increased by 92% so far this year.
An industry leader in electrical infrastructure solutions, RMC Switchgears specializes in producing electrical enclosures that improve safety by preventing electrocution and deterring electrical theft.
As part of its larger plan to generate value from India’s clean energy revolution, the company has lately broadened its focus to encompass renewable energy efforts, specifically in solar and green energy EPC and IPP solutions. Through its EPC approach, the company is also preparing to take part in the ₹9 trillion in investments that the government has earmarked for the transmission segment.
