The Board of Directors of KPI Green Energy Limited convened to discuss and approve the acquisition of a substantial stake in KPark Sunbeat Private Limited, a major player in the solar power industry. This strategic move aims to bolster KPI Green Energy Limited’s presence in the renewable energy sector.
The deal involves the acquisition of 9,990 equity shares of KPark Sunbeat Private Limited, equivalent to a substantial 99.90% of the company’s share capital. The purchase consideration stands at a noteworthy ₹1,26,07,92,245.70 (Rupees One Hundred Twenty-Six Crores Seven Lakhs Ninety-Two Thousand Two Hundred Forty-Five and Paisa Seventy), combining cash and equity issuance.
The acquisition transaction is set to be carried out in two parts. A considerable portion of the purchase consideration will be satisfied through the issuance of 15,18,480 equity shares of KPI Green Energy Limited, each with a face value of ₹10/-. These equity shares will be allotted on a preferential basis to Dr. Faruk G. Patel, the promoter of KPI Green Energy Limited. The remaining part of the purchase consideration will be paid in cash.
KPark Sunbeat Private Limited, the target company in this acquisition, is engaged in the development of solar power projects. It has ambitious plans to establish solar parks with a combined capacity of 100 MW across Dhrangadhra, Surendranagar, and Kantvav, Surat, in Gujarat. Additionally, the company possesses valuable land assets for further solar power project development and has secured the necessary approvals to transmit power to the grid.
The acquisition of equity shares in KPark is a related party transaction, as Dr. Faruk G. Patel holds a substantial 99.90% of equity shares in the target company. However, it is noteworthy that the transaction has been meticulously structured to ensure fairness and adherence to all applicable laws, including the receipt of approval from shareholders.
This strategic acquisition is poised to fortify KPI Green Energy Limited’s position in the renewable energy sector and aligns with the broader goal of promoting sustainable energy practices. The company’s commitment to green energy initiatives and the acquisition of KPark Sunbeat Private Limited demonstrates its dedication to advancing solar power generation and sustainable practices in India.