KPI Green’s Sun Drops Energia Raises Its Stake in DMGEL to 88.37%

Sun Drops Energia Limited (SDEL), a material subsidiary of KPI Green Energy Limited, has increased its shareholding in DEK and Mavericks Green Energy Limited (DMGEL) to 88.37% after completing the purchase of an additional 43,49,560 equity shares. KPI Green disclosed the development to BSE and the National Stock Exchange of India on 17 October 2026 under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

With this tranche, SDEL now holds 1,50,97,320 equity shares of DMGEL, representing 88.37% of its total paid-up equity share capital as of 17 October 2026. According to the filing, KPI Green received confirmation of the completed acquisition from SDEL at 10:30 a.m. the same day.

Progress of the Acquisition

The transaction is being executed in stages under an approval granted by the Board of Directors of Sun Drops in August 2026 to acquire up to 100% of DMGEL’s equity share capital. KPI Green first informed the stock exchanges of the proposal on 21 August 2026.

The first tranche was completed on 26 September 2026, when SDEL acquired 1,07,47,760 shares, or 62.91% of DMGEL. That purchase made DMGEL a subsidiary of SDEL and, consequently, a step-down subsidiary of KPI Green Energy under the Companies Act, 2013. The latest tranche adds 25.46 percentage points to the holding, leaving about 11.63% of DMGEL’s equity, roughly 19.88 lakh shares, outside SDEL’s ownership.

KPI Green stated that the detailed disclosures required under the SEBI Master Circular dated 30 January 2026 had already been furnished as Annexure A to its August intimation.

Deal Structure and Valuation

The acquisition is structured as a share swap rather than a cash purchase. DMGEL’s equity shares are valued at ₹32.66 each, placing the value of 100% of the company at ₹55.80 crore. As consideration, Sun Drops will issue up to 15,89,781 Compulsorily Convertible Preference Shares (CCPS) to DMGEL’s shareholders, subject to the approval of Sun Drops’ shareholders and compliance with the Companies Act, 2013. The notice issued to Sun Drops’ members priced the CCPS at ₹351.02 each, comprising a face value of ₹5 and a premium of ₹346.02.

At the disclosed price per share, the 88.37% stake acquired so far carries an implied value of about ₹49.31 crore. Since the consideration is settled in Sun Drops’ own securities, the transaction involves no cash outflow for the group. The filing also stated that no governmental or regulatory approvals are needed apart from shareholder approvals.

About DMGEL

Incorporated on 16 November 2021 and headquartered in Ahmedabad, DMGEL provides engineering, procurement and construction (EPC) and project development services for renewable energy projects, with a focus on utility-scale solar and commercial and industrial rooftop installations. Its turnover has grown sharply, from ₹30.62 crore in FY 2023-24 to ₹150.04 crore in FY 2024-25 and ₹213.98 crore in FY 2025-26.

Related Party Aspect

The transaction has been classified as a related party transaction. Dr. Faruk G. Patel, Promoter and Director of Sun Drops and Chairman and Managing Director of KPI Green Energy, holds 8.95% of DMGEL’s equity share capital. The acquisition of his shares and the issue of CCPS to him therefore fall under related party provisions. The company has stated that the pricing is on an arm’s length basis, supported by a registered valuer’s report.

Strategic Rationale

According to the filing, the acquisition is intended to expand Sun Drops’ renewable energy business by drawing on DMGEL’s technical expertise and project execution capabilities. Bringing an established EPC company into the group gives Sun Drops in-house execution capacity across solar, hybrid power, energy storage and associated transmission infrastructure.

The move comes as Sun Drops builds a larger project pipeline. In March 2026, it signed a Battery Energy Storage Purchase Agreement with Gujarat Urja Vikas Nigam Limited (GUVNL) for 445 MW/890 MWh of standalone battery energy storage capacity under GUVNL’s Phase-VII tender, supported by Viability Gap Funding from the Power System Development Fund. In August 2026, it was also among the successful bidders in GUVNL’s Phase-IX standalone BESS auction, securing 175 MW.

At the parent level, KPI Green Energy operates as an Independent Power Producer and as a service provider to Captive Power Producers under its “Solarism” brand. In late September 2026, the company also reported a ₹2,025 crore solar EPC work order for 500 MW/550 MWp from NACOF Oorja Private Limited, adding to the execution workload that an in-house EPC arm can support.

What Comes Next

With 88.37% already in hand, the remaining step is the acquisition of the balance shares. On reaching 100%, DMGEL will become a wholly owned subsidiary of Sun Drops. The original intimation had targeted completion by 30 September 2026, and the October tranche shows the process continuing beyond that date. KPI Green is expected to update the exchanges as further shares are acquired.

Official Sources

1. KPI Green Energy Ltd – Intimation regarding Proposed Acquisition by Subsidiary Company viz. Sun Drops Energia (Ref. KPI/MAT/AUG/2026/811, 21 August 2026), filed with BSE: https://www.bseindia.com/xml-data/corpfiling/AttachHis/ee3450bd-8068-474b-b102-2069c7c76fbd.pdf
2. BSE Limited – KPI Green Energy Ltd (Scrip Code 542323): Corporate Announcements: https://www.bseindia.com/stock-share-price/kpi-green-energy-ltd/kpigreen/542323/corp-announcements/
3. National Stock Exchange of India – KPI Green Energy Ltd (Symbol: KPIGREEN): Corporate Announcements: https://www.nseindia.com/get-quotes/equity?symbol=KPIGREEN
4. KPI Green Energy Limited – Official Website (Investors): https://www.kpigreenenergy.com/
5. Gujarat Urja Vikas Nigam Limited (GUVNL) – Official Website: https://www.guvnl.com/