KPI Green Energy Subsidiary to Acquire DMGEL for ₹55.80 Crore, Expanding Renewable Energy Business
KPI Green Energy Limited has announced that its subsidiary, Sun Drops Energia Limited, has approved the proposed acquisition of up to 100% of the equity shares of DEK and Mavericks Green Energy Limited (DMGEL) at a valuation of ₹55.80 crore. The transaction is expected to strengthen Sun Drops’ renewable energy business by adding DMGEL’s technical expertise and project execution capabilities.
₹55.80 Crore Acquisition
Under the proposed transaction, Sun Drops Energia will acquire up to 1,70,84,853 equity shares of DMGEL at a price of ₹32.66 per share, resulting in an aggregate acquisition cost of approximately ₹55.80 crore.
The acquisition will not be settled through a cash payment. Instead, Sun Drops will issue up to 15,89,781 Compulsorily Convertible Preference Shares (CCPS) of equivalent value to the shareholders of DMGEL.
The proposed acquisition is subject to approval by Sun Drops’ shareholders and to the completion of applicable regulatory and corporate compliance requirements. The transaction is expected to be completed by September 30, 2026.
DMGEL to Become a Step-Down Subsidiary
If Sun Drops acquires 50% or more of DMGEL’s equity shares, DMGEL will become a step-down subsidiary of KPI Green Energy Limited.
The proposed acquisition is aimed at expanding Sun Drops’ presence in renewable energy by leveraging DMGEL’s technical expertise and project execution capabilities.
DMGEL’s Renewable Energy Business
DMGEL is a public limited company incorporated on November 16, 2021, and registered with the Registrar of Companies, Ahmedabad. The company operates in the renewable energy sector and provides EPC and project development solutions.
Its business portfolio includes:
- Utility-scale ground-mounted solar projects
- Commercial and industrial rooftop solar
- Hybrid power solutions
- Battery Energy Storage Systems (BESS)
- Transmission infrastructure
- Operation and maintenance services
DMGEL has an authorised share capital of ₹25 crore and paid-up equity share capital of approximately ₹17.08 crore.
DMGEL Revenue Growth
DMGEL has reported significant growth in turnover over the past three financial years.
| Financial Year | Turnover |
|---|---|
| FY2025-26 | ₹213.98 crore |
| FY2024-25 | ₹150.04 crore |
| FY2023-24 | ₹30.62 crore |
The company’s turnover increased sharply from ₹30.62 crore in FY2023-24 to ₹213.98 crore in FY2025-26, highlighting the expansion of its renewable energy business.
Related Party Transaction
The proposed acquisition will constitute a related party transaction to the extent of DMGEL shares held by Dr. Faruk G. Patel, promoter and director of Sun Drops Energia. Dr. Patel holds 8.95% of the equity share capital of DMGEL.
KPI Green Energy stated that the transaction will be undertaken at arm’s length, taking into consideration a valuation report issued by Mr. Abhishek Chhajed, Registered Valuer, dated August 20, 2026.
Acquisition Consideration
The acquisition consideration will be discharged through the issuance of up to 15,89,781 CCPS of Sun Drops Energia to DMGEL shareholders. The proposed transaction therefore represents a share-based acquisition rather than a cash acquisition.
The acquisition price is ₹32.66 per DMGEL share, with up to 1.71 crore shares proposed to be acquired for an aggregate value of ₹55.80 crore.
Key Takeaway
KPI Green Energy’s subsidiary Sun Drops Energia Limited is set to acquire up to 100% of DMGEL for ₹55.80 crore, marking another expansion in the renewable energy space. DMGEL brings capabilities across solar EPC, rooftop solar, hybrid power, BESS, transmission infrastructure and O&M services. If Sun Drops acquires at least 50% of DMGEL, the company will become a step-down subsidiary of KPI Green Energy. The transaction is expected to be completed by September 30, 2026, subject to shareholder approval and applicable compliances.
Disclaimer: This article is based on the regulatory disclosure made by KPI Green Energy Limited on August 21, 2026. It is intended for informational purposes only and should not be considered investment advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.