Solarworld Energy Solutions shares gained after the company announced a 50:50 joint venture with Rays Power Infra for a solar cell plant.

The move behind this rally is a fresh 50:50 partnership with Rays Power Infra to set up a 2.4 GW solar photovoltaic cell facility. The company’s board approved the deal on 7 September.

Here’s the detail. Solarworld will hold half the stake in a joint entity called Rays Green Energy Manufacturing Private Limited, with Rays Power Infra holding the other half.

The plant will come up on around 41.30 acres of land in Mohasa, Narmadapuram district in Madhya Pradesh, allotted by the state’s industrial development body.

Construction is already underway, and the facility will produce n-type TOPCon G12R solar cells, a high-efficiency cell technology.

On the money side, Solarworld will put in up to Rs 100 crore as equity and extend a loan of up to Rs 320 crore to fund the joint venture, taking its total financial commitment to Rs 520 crore.

The overall project itself is estimated to cost around Rs 1,000 crore, working out to roughly Rs 417 crore per GW of capacity. There’s an interesting backstory here too.

Solarworld had originally planned to use part of its September 2025 IPO proceeds, around Rs 420 crore, to fund a smaller 1.2 GW facility through its subsidiary, Kartik Solarworld.

As of 30 June this year, none of that money had actually been deployed. The board has now decided to redirect those unused funds into this larger, jointly-owned project instead, effectively doubling planned capacity without adding fresh cash outlay.

The company expects the new facility to start commercial production by June 2027. It will also benefit from subsidised power tariffs of about Rs 4.30 per unit under a government scheme.

Solarworld shares are down 11.83% over the past month and 12.33% over six months, though the stock remains largely flat compared with a year ago.

At 11:43 am, Solarword Energy Solutions is trading at Rs 148.98, up 0.73% from the previous close.

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