KPI Green Energy Ltd completes acquisition of KPark Sunbeat Pvt Ltd

KPI Green Energy Ltd has completed the acquisition of KPark Sunbeat Private Limited, and the purchase consideration payable has been discharged by way of allotment of 15,18,480 (Fifteen Lakhs Eighteen Thousand Four Hundred Eighty) equity shares of the Company and cash payment of ₹2,26,073.70 (Rupees Two Lakhs Twenty Six Thousand Seventy Three and Paisa Seventy).

The Target Company is engaged in the business of development of solar power projects. The Target Company proposes to set up a 70 MW solar park at Dhrangadhra, Surendranagar, Gujarat and a 30 MW solar park at Kantvav, Surat, Gujarat, aggregating to 100 MW of solar power projects on Independent Power Producer ('IPP') model. The Target Company also owns 2,11,367 sq mtrs. of land at Surendranagar, Gujarat on freehold basis for development for solar power projects. The Target Company has also secured necessary approvals from Gujarat Energy Transmission Corporation Limited ('GETCO') to evacuate the power generated at the respective solar power plant to the nearest 66KV / 220KV sub-station. The Target Company has already entered into long term power purchase agreement for sale of 30MW of solar power proposed to be generated from solar park located at Kantvav, Surat, Gujarat. Further, the Target Company has also received interest from certain customers for sale of 70MW solar power proposed to be generated from solar park located at Dhrangadhra, Surendranagar, Gujarat. The Target Company believes that it would be able to enter long-term power purchase agreements in due course. However, the commercial operation of solar power plant has not yet commenced and hence, no material revenue has been realized by the Target Company in the last three financial years.

The object of acquisition of the share of the KPark is to consolidate solar power projects of the KP Group under single entity i.e., KPI Green Energy Limited in order to achieve benefits of scale. This will enable the Company to dynamically allocate the resources in the best possible ways and achieve the ambitious target to touch combined renewable energy capacity of 1,000 MW by 2025. The acquisition of the above KPark is an enabler for efficient reorganization of renewable energy businesses which may be pursued in future.

The total Purchase Consideration i.e., ₹1,26,07,92,245.70 (Rupees One Hundred Twenty Six Crores Seven Lakhs Ninety Two Thousand Two Hundred Forty Five and Paisa Seventy) was discharged by way of - (i) cash consideration of ₹2,26,073.70 (Rupees Two Lakhs Twenty Six Thousand Seventy Three and Paisa Seventy); (ii) 15,18,480 (Fifteen Lakhs Eighteen Thousand Four Hundred Eighty) equity shares of the Company having face value of ₹10/- (Rupees Ten only) each, at an issue price of ₹830.15 (Rupees Eight Hundred Thirty and Paisa Fifteen) equity share, allotted on a preferential basis.

Shares of KPI Green Energy Ltd was last trading in BSE at Rs. 1187.55 as compared to the previous close of Rs. 1152.20. The total number of shares traded during the day was 17375 in over 1670 trades.

The stock hit an intraday high of Rs. 1205.00 and intraday low of 1163.10. The net turnover during the day was Rs. 20516452.00.

Source : Equity Bulls

Keywords

KPIGreenEnergy INE542W01017 Acquisition Complete KParkSunbeat