KPI Green Energy Subsidiary Acquiring DMGEL to Expand Renewable Energy Footprint
KPI Green Energy Limited's subsidiary, Sun Drops Energia Limited, has approved a significant acquisition of DEK and Mavericks Green Energy Limited (DMGEL). The transaction is aimed at expanding Sun Drops' renewable energy business by leveraging the technical expertise and project execution capabilities of DMGEL.The proposed acquisition targets up to 100% equity shares of DMGEL and has been valued at Rs. 55.80 Crores. In consideration for this purchase, Sun Drops will issue up to 15,89,781 Compulsorily Convertible Preference Shares (CCPS) of equivalent value to the shareholders of DMGEL.
Upon achieving acquisition of 50% or more of DMGEL's equity shares, DMGEL is set to become a step-down Subsidiary Company of KPI Green Energy Limited, subject to applicable laws and shareholder approval processes.
Acquisition Details and Strategic Rationale
The acquired company, which operates in the Renewable Energy sector, specializes in providing EPC and project development solutions across various solar power technologies, including utility scale ground mounted solar, commercial and industrial rooftop solar, hybrid power solutions, battery energy storage systems, and transmission infrastructure services.Sun Drops is pursuing this acquisition to strengthen its presence in the renewable energy market by integrating DMGEL’s operational strengths. The transaction is expected to be completed by September 30, 2026, pending shareholder approvals.
The acquisition involves the purchase of up to 1,70,84,853 equity shares of DMGEL at Rs. 32.66/- per share. Dr. Faruk G. Patel, a Promoter & Director of Sun Drops, currently holds 8.95% equity capital in DMGEL. The transaction has been classified as a Related Party Transaction (RPT), and it is noted that the deal is being conducted at arm's length based on a valuation report issued by Mr. Abhishek Chhajed dated August 20, 2026.
Financial Snapshot of DMGEL
DMGEL was incorporated on November 16, 2021, and focuses its operations within the renewable energy sector in India. The company's financial performance over recent years is detailed below:| Financial Metric | Fiscal Year 2023-24 (Rs. In Lakhs) | Fiscal Year 2024-25 (Rs. In Lakhs) | Financial Year 2025-26 (Rs. In Lakhs) |
|---|---|---|---|
| Turnover | 3,062 | 15,004 | 21,398 |
| Capital | 1708.48 | 1708.48 | 1708.48 |
KPIGREEN Stock Price Movement
On Friday, shares of KPI Green Energy Limited rallied significantly, closing at ₹312.60 after gaining 2.59%. The stock saw brisk activity through the session, with over 2.18 million shares traded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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