KPI Green Energy’s subsidiary, Sun Drops Energia Limited, has received board approval to acquire up to 100% equity shares in DEK and Mavericks Green Energy Limited (DMGEL) for ₹55.80 crore. The acquisition will be settled through the issuance of up to 15,89,781 Compulsorily Convertible Preference Shares (CCPS). This strategic move aims to expand Sun Drops’ renewable energy business by integrating DMGEL’s expertise and project execution capabilities. DMGEL is a Public Limited Company focused on EPC and project development in the solar energy sector.
Strategic Expansion in Renewable Energy
KPI Green Energy Limited announced today that its subsidiary, Sun Drops Energia Limited (“Sun Drops”), has received board approval for a significant acquisition. Sun Drops will acquire up to 100% of the equity shares of DEK and Mavericks Green Energy Limited (“DMGEL”) for a total valuation of ₹55.80 crore. This strategic move is intended to bolster the renewable energy business of Sun Drops by leveraging DMGEL’s established technical expertise and project execution capabilities in the solar power sector.
Deal Structure and Consideration
The acquisition will be primarily financed through the issuance of up to 15,89,781 Compulsorily Convertible Preference Shares (CCPS) of Sun Drops. These CCPS will be issued to the shareholders of DMGEL, subject to the necessary shareholder approvals and adherence to the Companies Act, 2013. This issuance is equivalent in value to the acquired equity shares, ensuring a share-based consolidation of assets. Upon successful acquisition of 50% or more equity shares, DMGEL will become a step-down subsidiary of KPI Green Energy.
About the Acquired Entity: DMGEL
DMGEL, incorporated on November 16, 2021, is a Public Limited Company engaged in providing Engineering, Procurement, and Construction (EPC) and project development solutions within the renewable energy sector. Its operations primarily focus on solar power, encompassing utility-scale ground-mounted solar, commercial and industrial rooftop solar, hybrid power solutions, battery energy storage systems, and transmission infrastructure. The company also offers operation and maintenance services. DMGEL’s existing paid-up equity share capital stands at ₹1708.48 Lakhs, with an authorized share capital of ₹2500.00 Lakhs. Its turnover for the financial year 2023-24 was ₹3062 Lakhs, with projections for 2024-25 and 2025-26 at ₹15004 Lakhs and ₹21398 Lakhs, respectively.
Related Party Transaction and Arm’s Length Compliance
The transaction involves a related party as Dr. Faruk G. Patel, Promoter & Director of Sun Drops, holds 8.95% equity share capital of DMGEL. Consequently, the acquisition of these shares and the issuance of CCPS to Dr. Patel constitute a Related Party Transaction. However, the company assures that the proposed transaction is being conducted at “arm’s length”, supported by a valuation report issued by Mr. Abhishek Chhajed, a Registered Valuer. The acquisition is expected to be completed by September 30, 2026, pending shareholder and applicable compliances.
Source: BSE
