KPI Green Energy Limited has signed a non-binding Letter of Intent (LOI) with Raz Holding Group, a leading diversified conglomerate from the Kingdom of Saudi Arabia. The agreement outlines a proposed strategic investment and/or collaboration between the two entities.

The LOI contemplates that the transaction may be structured through acquisitions, capital infusion, or other collaborative arrangements. The final structure, instrument, and valuation will be mutually agreed upon following the completion of due diligence.

Deal Structure and Conditions

The proposed investment is subject to several key conditions precedent:

• Satisfactory completion of financial, legal, tax, technical, and ESG due diligence.
• Negotiation and execution of definitive and legally binding agreements.
• Necessary corporate, board, and shareholder approvals from both parties.
• All applicable regulatory approvals, including those under FEMA/RBI, SEBI, and competition-law requirements.

The LOI is explicitly non-binding in its entirety and does not create any obligation for either party to proceed with the transaction. Any binding commitment will arise solely upon the execution of definitive agreements.

Timeline and Exclusivity

The parties intend to work towards definitive agreements within an exclusivity period of ninety days from the date of the LOI. The current validity period extends until November 18, 2026, unless extended by mutual written agreement.

Strategic Context

For KPI Green Energy, this development reflects growing international investor interest in India’s clean-energy sector. The group operates across Solar and Wind Independent Power Producer (IPP), Engineering Procurement and Construction (EPC), transmission, and manufacturing segments. It also holds emerging positions in battery energy storage systems, cell manufacturing, operations and maintenance services, and green hydrogen.

Dr. Faruk G. Patel, Founding Promoter of KP Group, stated that the interest shown by Raz Holding Group serves as a strong endorsement of the assets built over three decades. He noted that international capital is closely monitoring Indian clean-energy platforms, viewing this engagement as part of a broader shift in how global capital perceives Indian renewables.

About the Parties

Raz Holding Group, established in 2008, has grown into one of Saudi Arabia’s leading diversified conglomerates. Its interests span investments, real estate, hospitality, finance, fintech, consulting, artificial intelligence, healthcare, education, defence, media, communications, creative industries, culture, film production, and event management.

KP Group, established in 1994 by Dr. Faruk G. Patel, is a multi-faceted conglomerate with core expertise in renewable energy, infrastructure, and innovation. The group has spearheaded transformative projects in wind, solar, hybrid energy, Battery Energy Storage Systems (BESS), and green hydrogen.

KPI Green Energy subsidiary Sun Drops Energia Limited plans to acquire up to 100% stake in DEK and Mavericks Green Energy Limited (DMGEL) for ₹55.80 crore.

Acquisition details

The transaction involves Sun Drops Energia purchasing equity shares of DMGEL at ₹32.66 per share, aggregating to the total valuation of ₹55.80 crore. In consideration, Sun Drops will issue up to 15,89,781 Compulsorily Convertible Preference Shares (CCPS) to DMGEL shareholders.

Strategic context and target profile

Upon acquiring 50% or more of the equity shares, DMGEL will become a step-down subsidiary of KPI Green Energy. The acquisition aims to expand Sun Drops' renewable energy business by leveraging DMGEL's technical expertise in solar power EPC and project development.

DMGEL, incorporated on November 16, 2021, operates in the renewable energy sector with a focus on utility-scale ground-mounted solar, commercial rooftop solar, hybrid power solutions, and battery energy storage systems.

Financial performance of DMGEL

The target company has shown significant revenue growth over the past three fiscal years:

Related party transaction

Dr. Faruk G. Patel, Promoter and Director of Sun Drops, holds an 8.95% equity stake in DMGEL. Consequently, the portion of the transaction involving his shares constitutes a related-party transaction. The deal is being conducted at arm's length based on a valuation report dated August 20, 2026.

Timeline and approvals

The acquisition is expected to be completed by September 30, 2026, subject to shareholder approvals and applicable regulatory compliances under the Companies Act, 2013 and SEBI Listing Regulations.