RMC Switchgears Share Price Locked In Upper Circuit After Rs 100-Crore Facility Announced

Share price of RMC Switchgears Ltd. were locked in 5% upper circuit on Monday, after it announced plans to set up a Rs 100-crore solar products manufacturing facility in Jaipur.

The project, aimed at producing solar modules and mounting structures, will have an annual production capacity of 1 Gigawatt peak and is expected to strengthen the company’s position in the renewable energy sector, it said in an exchange filing.

The new manufacturing plant will be located at Badodiya village, Chaksu Tehsil, Jaipur, Rajasthan, adjacent to RMC's existing operational plant. This location ensures seamless integration and enhanced operational efficiency. The company plans to commence operations at the facility by July 2025, with commercial revenues expected to begin from August 2025, it said.

The Rs 100-crore capital expenditure for the project will be financed through a mix of internal accruals, equity, and debt. The solar module plant will cater to both internal requirements for ongoing projects and external market demand, thus supporting the company’s expansion in the renewable energy space.

To execute this project, RMC Switchgears will leverage its subsidiary, RMC Green Energy Pvt., increasing its stake in the subsidiary from 51% to 100% through equity infusion. This move will provide RMC with greater control over operations and enhance its ability to develop a comprehensive solar ecosystem, the filing said.

The new facility is part of RMC’s broader strategy to integrate backward into the solar supply chain, reducing dependence on external suppliers, improving cost efficiencies, and ensuring timely delivery of products, it said.

The company is also exploring new opportunities in Solar Engineering, Procurement, and Construction and Independent Power Producer projects, which are expected to further contribute to its growth in the coming years, according to the filing.

The scrip rose as much as 5% to Rs 1,104.45 apiece and it continued to trade at the same level at 11:24 a.m. This compares to a 0.46% decline in the NSE Nifty 50.

It has risen 88.59% in the last 12 months. Total traded volume so far in the day stood at 2 times its 30-day average. The relative strength index was at 79.