Green Stocks Jan 1: Quite Start In New Year For Green Pack

As expected, there was nothing much of consequence for the green pack on the first day of trading in the new year. While some of the smaller caps like GK Energy recorded strong gains, others meandered. Like the pollution that hangs heavy in the Delhi air, waiting for a gust of wind to provide some relief, the green pack continues to dwell under the shadow of doubt, waiting for a burst of clarity from the government or anyone else of substance, for that matter.

The year did start well on the optics, however, with order wins for Pace Digitek, and a wind tender result that found winners at Rs 3.43/unit. It remains to be seen how storage prices move as bids tendered out earlier come in, and of course, the next set of solar+ storage tenders as well. With many such results expected right up to April, there is no shortage of potential triggers for many of the stocks languishing near annual lows. Outside of these, it would take events like a large buyout to make observers look anew at the sector. With Gujarat playing host to the Commonwealth Games in 2030, it does look like a concerted plan is in place to increase the share of green energy in the state's energy mix as far as possible by then.     

Watching all these developments warily and with not a little nervousness must be CFO's at the slew of IPO aspirants, who face a difficult choice between going for debt funding or private funding over an IPO, should the latter fall through due to weakening market conditions. With many firms having bid aggressively in anticipation of raising equity-backed capital later, a significant delay for many such plans could even place some projects at risk. 

With the government and its agencies making a fine art of retrieving such situations where they involve prestige projects, we look forward to seeing how this pans out.

List of Green Stocks