Smallcap company with 6,000% return in 5 years announces 1:10 stock split. Check details

Websol Energy System, manufacturer of solar cells and modules, has announced a 1-for-10 stock split, which will change the face value of its equity shares from Rs 10 to Rs 1. The split will make the stock more affordable and accessible to a wider base of retail investors, after the company delivered over 6,000% returns in 5 years.

In the stock split, while the number of shares increases and the price per share decreases, the company's overall market capitalization and an investor's total holding value remain unchanged. Websol is a small-cap company with a market capitalization of Rs 5,463 crore.

The stock split is expected to be completed by October 2025, pending approval from the company's members at the upcoming annual general meeting.


In addition to the stock split, the board also approved a major future expansion plan for its solar cell and solar module production lines.

The company plans to add a capacity of 4 gigawatts (GW) for both solar cells and modules in two phases. The first phase (Phase III) is set for completion by June 2027, followed by the second phase (Phase IV) by June 2028.

The investment required for this expansion is approximately Rs 3,000 crore and will be financed through a combination of bank loans, equity, and internal funds. The rationale behind this massive expansion is to meet India's growing demand for solar energy.

To support its expansion plans, the company will also incorporate a wholly-owned subsidiary named "Websol Renewables" or a similar name approved by the Registrar of Companies. The new subsidiary will be incorporated for the next phase of expansion.

Websol Energy manufactures photovoltaic crystalline solar cells and modules. The company's products are used for solar energy panels for both commercial and industrial applications in India and other countries.

The company has a reputation for producing reliable and quality solar products and has received various international certifications.

The board meeting also made changes in the company's management. Abhijit Majumdar, a practicing company secretary, was appointed as the Secretarial Auditor for five years starting from the 2025-26 financial year.