Sun Drops Energia Limited, a subsidiary of KPI Green Energy Limited, has executed a definitive agreement to acquire up to 100% of the equity stake in DEK and Mavericks Green Energy Limited (DMGEL), a specialized solar EPC firm. The transaction is valued at ₹558 million (₹55.80 crore) and is structured to consolidate technical infrastructure and project development capabilities within the group’s renewable energy portfolio. The acquisition is targeted for completion by September 30, 2026, subject to requisite shareholder approvals.
Transaction Structure and Financial Terms
The acquisition utilizes an all-equity share-swap mechanism, a structure that preserves liquidity while facilitating inorganic growth. Sun Drops Energia Limited will purchase up to 1,70,84,853 equity shares of DMGEL at a price of ₹32.66 per share. As consideration, the acquiring entity will issue Compulsorily Convertible Preference Shares (CCPS) to the existing shareholders of DMGEL.
| Parameter | Detail |
| Total Acquisition Value | ₹558 Million (₹55.80 Crore) |
| Implied Revenue Multiple | 0.26x FY26 Turnover |
| DMGEL Shares Acquired | Up to 1,70,84,853 shares |
| Purchase Price per Share | ₹32.66 |
| Consideration Mode | Issuance of up to 1,589,781 CCPS by Sun Drops Energia Limited |
| Subsidiary Status | DMGEL becomes a step-down subsidiary upon ≥50% equity acquisition |
Profile of the Target: DEK and Mavericks Green Energy Limited (DMGEL)
Headquartered in Ahmedabad with a significant operational presence in Surat, DMGEL was incorporated in November 2021. The firm specializes in Engineering, Procurement, and Construction (EPC) and project development within the clean energy segment.
Technical Capabilities:
- Utility-scale ground-mounted solar projects.
- Commercial & Industrial (C&I) rooftop solar solutions.
- Hybrid power projects and transmission infrastructure.
- Battery Energy Storage Systems (BESS).
- Operations and Maintenance (O&M) services.
Financial Trajectory (Turnover):
- FY2023-24: ₹30.62 crore
- FY2024-25: ₹150.04 crore
- FY2025-26: ₹213.98 crore (Representing a ~600% increase in two years)
Strategic Integration and KP Group Synergy
The transaction is a core component of the KP Group’s overarching strategy to achieve 10 GW of renewable energy capacity by 2030. DMGEL provides Sun Drops Energia Limited with specialized teams and technical infrastructure required for the “Small CPP” segment (projects 35 MW and below), primarily catering to MSME clients.
This acquisition also supports the planned Sun Drops Energia Limited IPO, targeted for the first half of the next financial year. The parent entity, KPI Green Energy, intends to retain a minimum 51% stake post-listing to maintain consolidation. Funds from the IPO are earmarked to scale the Battery Energy Storage Systems (BESS) vertical. Under a “build, operate, and own” (BOO) framework, the group intends to transition into a “Battery-as-a-Service” provider, leveraging the project execution expertise of DMGEL.
Corporate Governance and Related-Party Disclosures
The transaction includes a related-party component under SEBI regulations, as Dr. Faruk G. Patel (Promoter/Director of Sun Drops Energia) holds an 8.95% equity stake in DMGEL.
To maintain transparency, the transaction was conducted on an “arm’s length” basis. The valuation was determined by Mr. Abhishek Chhajed, an IBBI-registered independent valuer, in a report dated August 20, 2026. No external government approvals are required beyond standard shareholder authorization.
KPI Green Energy: Parent Entity Performance
The acquisition aligns with the robust growth trajectory of the parent company, KPI Green Energy Limited, which maintains a high-growth credit profile rated [ICRA]A (Positive)/A2+.
Financial Highlights (Q3 FY26):
- Total Revenue: ₹676 crore (45% YoY increase)
- EBITDA: ₹251 crore (73% YoY increase)
Operational Pipeline:
- IPP Portfolio: 1.16 GWp currently energized; 1.41 GWp under active execution.
- Consolidated CPP Order Book: 2.57 GW.
- EPC Order Book: Exceeds ₹5,500 crore in total value.
Quick Reference Table
| Category | Reference Data |
| Parent Company | KPI Green Energy Limited |
| Acquiring Subsidiary | Sun Drops Energia Limited |
| Target Company | DEK and Mavericks Green Energy Limited (DMGEL) |
| Valuation | ₹55.80 Crore |
| Valuation Date | August 20, 2026 |
| Transaction Type | All-equity share-swap |
| Consideration Mode | 1,589,781 Compulsorily Convertible Preference Shares (CCPS) |
| Targeted Closing Date | September 30, 2026 |
Official Sources & Regulatory Citations
- Credit Rating Authority:
- ICRA Limited — Official Credit Rating Rationale: Sun Drops Energia Private Limited (31 July 2025)
- Official rating action assignment of
[ICRA]A(CE) (Positive)backed by the corporate guarantee of parent company KPI Green Energy Limited. Standalone credit profile rated at[ICRA]A-.
- Official rating action assignment of
- ICRA Limited — Official Credit Rating Rationale: Sun Drops Energia Private Limited (31 July 2025)
- National Stock Exchange of India (NSE):
- NSE India Corporate Disclosures Portal — KPI Green Energy Limited (Symbol: KPIGREEN)
- Official stock exchange regulatory filings, including the corporate disclosure of the proposed share-swap acquisition of DMGEL by subsidiary Sun Drops Energia Limited (filed under SEBI Listing Regulations on 21 August 2026).
- NSE India Corporate Disclosures Portal — KPI Green Energy Limited (Symbol: KPIGREEN)
- BSE Limited (BSE):
- BSE India Corporate Disclosures Portal — KPI Green Energy Limited (Scrip Code: 542323)
- Official exchange filings under SEBI Regulation 30, detailing project synchronisation updates, shareholder voting results, and corporate governance compliance reports.
- BSE India Corporate Disclosures Portal — KPI Green Energy Limited (Scrip Code: 542323)
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