KPI Green will buy 508 MW wind assets for Rs 2,410 crore. This deal takes the company’s total capacity to 1.6 GW. CFO Kapil Kriplani said, "We got the deal at a very reasonable valuation." The transaction should close by February 28, 2027, helping the firm reach its long-term growth goals.
The acquisition will take KPI Green's total operating and under-development capacity to around 1.6 GW. The portfolio comprises 301.4 MW held by Alfanar Energy and 206.5 MW held by Netra Wind (NWPL), the company said.
The deal translates into an enterprise value of about Rs 4.8 crore per MW, compared with Rs 7.5-8 crore per MW that it would cost to set up a new wind project, according to KPI Green. "We got the deal at a very reasonable valuation. To set up 500 MW would be a cumbersome process and would have taken three years," KPI Green chief financial officer Kapil Kriplani told FE.
The enterprise value includes more than Rs 2,000 crore of debt, with the balance accounting for equity, Kriplani said. The transaction is expected to close by February 28, 2027.
The two portfolios have long-term power purchase agreements with the Solar Energy Corporation of India (SECI), providing contracted revenue visibility. The PPAs have a remaining contracted life of about 21 years on a capacity-weighted basis, based on the commissioning dates and capacity of the projects.
The acquisition comes as parent KP Group steps up its renewable energy ambitions under its new KP 3.0 strategy, unveiled at its Investor Day on Wednesday. The group is targeting 10 GW of independent power producer (IPP) capacity through KPI Green Energy by FY32, alongside 10 GW of third-party renewable EPC execution and 10 GWh of integrated battery manufacturing capacity spanning cells and battery energy storage systems.
"With orders received, KP Group's renewable energy orderbook has nearly reached 10 GW, hence KP Group is raising its ambitions and defining a more focused roadmap for its next phase," KP Group chairman and managing director Faruk G Patel said.
The three targets are aimed at creating separate businesses around owning renewable power assets, executing projects for external customers and manufacturing storage systems and cells.
Kriplani said the 10-GW IPP target would require investments of around Rs 30,000 crore, which would be funded through a combination of debt and equity. The group expects its annual profit after tax of around Rs 800 crore to support the equity requirement.
The cell and BESS manufacturing facilities would require another Rs 4,500 crore, which would be funded through internal accruals and part of the proceeds from an initial public offering, he said.