KPI Green Energy acquires full ownership of KPark Sunbeat to expand solar power projects

KPI Green Energy Limited, formerly known as K.P.I. Global Infrastructure Limited, has recently marked a significant milestone in the renewable energy sector by acquiring complete ownership of KPark Sunbeat Private Limited (“KPark”). This acquisition, completed earlier this month, saw KPI Green Energy taking over a 99.9% stake in KPark Sunbeat for a substantial amount of Rs 126.7 crores.

Finalization of Acquisition:

The acquisition process culminated with KPI Green Energy securing the remaining 0.1% stake in KPark on December 16, 2023. Consequently, KPark Sunbeat has now become a wholly-owned subsidiary of KPI Green Energy Limited, further consolidating the company’s footprint in the renewable energy domain.

Renewable Energy Milestone: KPI Green Energy Secures Complete Stake in KPark Sunbeat

About KPark Sunbeat Private Limited:

KPark Sunbeat, incorporated on September 11, 2019, is a company engaged in the development of solar power projects. With its registered office located in Surat, Gujarat, KPark has been instrumental in proposing significant solar park projects. The company is currently involved in setting up a 70 MW solar park at Dhrangadhra, Surendranagar, and a 30 MW solar park at Kantvav, Surat, aggregating to 100 MW of solar power projects under the Independent Power Producer (IPP) model.

Land and Approvals:

KPark owns a substantial amount of land in Surendranagar, Gujarat, earmarked for the development of solar power projects. The company has secured necessary approvals from the Gujarat Energy Transmission Corporation Limited (GETCO) for the evacuation of power generated at these solar power plants.

Power Purchase Agreements and Future Plans:

KPark has already entered into a long-term power purchase agreement for the sale of 30MW of solar power from its Kantvav, Surat location. Additionally, there is notable interest from customers for the sale of 70MW solar power from the Dhrangadhra, Surendranagar project. Although commercial operations have not yet commenced, KPark is optimistic about securing more long-term power purchase agreements in the near future.

Financial Overview of KPark:

The financial performance of KPark has shown a modest turnover of Rs 15 lakhs in the financial year 2023, with no significant revenue in the preceding two financial years. This acquisition aligns with KPI Green Energy Limited’s objective to consolidate its solar power projects under a single entity, aiming for a combined renewable energy capacity of 1,000 MW by 2025.

Strategic Implications of the Acquisition:

The acquisition is seen as a strategic move for KPI Green Energy Limited, enabling efficient reorganization and dynamic resource allocation within its renewable energy businesses. The purchase consideration for acquiring the 0.10% shareholding in KPark was Rs 12.6 lakhs with a per-share price of Rs. 1,26,205.43.