New Delhi, Aug. 25 -- Sun Drops Energia Ltd, an unlisted subsidiary of the listed renewable energy developer KPI Green Energy Ltd, has agreed to acquire up to 100% of solar EPC firm DEK and Mavericks Green Energy Ltd (DMGEL) in an all-equity, share-swap deal valuing the target at Rs 55.80 crore (around $5.8 million).
Under the agreement, Sun Drops will acquire up to 1.7 crore equity shares of DMGEL at Rs 32.66 per share, according to an August 21 stock exchange filing.
To fund the acquisition without cash outlay, Sun Drops will issue up to 15.9 lakh compulsorily convertible preference shares (CCPS) of equivalent value to DMGEL's existing shareholders.
The transaction is scheduled to close by September 30, subject to shareholder and regulatory approvals. DMGEL will become a step-down subsidiary of KPI Green Energy once Sun Drops' stake crosses 50%.
The deal includes a related-party element, as Faruk G. Patel, promoter and managing director of KP Group and director at Sun Drops, holds an 8.95% equity stake in DMGEL. KPI Green Energy stated that the transaction is being executed on an arm's length basis, supported by an independent valuation report.
Surat-based DMGEL, incorporated in November 2021, provides engineering, procurement, and construction (EPC) and project development services covering ground-mounted utility solar, commercial and industrial (C&I) rooftop solar, hybrid power systems, battery energy storage systems (BESS) and transmission infrastructure.
The company has scaled up rapidly amid surging demand for C&I clean energy installations, with revenue rising to Rs 213.98 crore in FY26 from Rs 150.04 crore in FY25 and Rs 30.62 crore in FY24, on a paid-up equity base of Rs 17.08 crore.
The acquisition comes as Indian renewable energy developers increasingly bring EPC and balance-of-plant capabilities (which includes all the supporting infrastructure of a power-generation facility) in-house to hedge against equipment cost volatility and accelerate project commissioning.
Sun Drops Energia develops, owns and operates solar power facilities across the country and, by adding DMGEL's technical capabilities, it is expected to strengthen its delivery capacity across both independent power producer (IPP) and captive power plant (CPP) segments.
The transaction aligns with parent entity KP Group's push toward reaching 10 gigawatts (GW) of renewable capacity by 2030.
KPI Green Energy is listed on the BSE (scrip code 542323) and the NSE (symbol KPIGREEN).
Published by HT Digital Content Services with permission from VC Circle.