KPI Green Energy subsidiary to acquire DMGEL stake for ₹55.80 crore
Sun Drops Energia to acquire up to 100% stake in DMGEL for ₹55.80 crore. Consideration involves issuance of 15,89,781 CCPS at ₹32.66 per share. DMGEL turnover grew from ₹3,062 lakh in FY24 to ₹21,398 lakh in FY26. Transaction includes related-party component involving promoter Dr. Faruk G. Patel. Deal completion targeted by September 30, 2026.
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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.
| Parameter | Details |
|---|---|
| Acquiring entity | Sun Drops Energia Limited |
| Parent company | KPI Green Energy |
| Target entity | DEK and Mavericks Green Energy Limited (DMGEL) |
| Total acquisition value | ₹55.80 crore |
| Share price | ₹32.66 per share |
| Consideration mode | Issuance of up to 15,89,781 CCPS |
| Ownership sought | Up to 100% |
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:
| Financial Year | Turnover (₹ lakh) |
|---|---|
| FY26 | 21,398 |
| FY25 | 15,004 |
| FY24 | 3,062 |
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.
Historical Stock Returns for KPI Green Energy
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.74% | +0.67% | -20.99% | -18.53% | -37.91% | +2,261.40% |
How will the issuance of 15.89 lakh CCPS impact KPI Green Energy's diluted earnings per share (EPS) and promoter holding post-conversion?
What is the projected timeline for DMGEL's existing pipeline projects to contribute to Sun Drops Energia's consolidated revenue after the acquisition closes?
Given the related-party nature of the transaction involving Dr. Faruk G. Patel, what specific safeguards are in place to ensure minority shareholder interests are protected during the valuation process?
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