Gujarat-based KP Group is planning a ₹4,000-crore IPO of Sun Drops Energia within the next 10-12 months, according to people familiar with the matter as reported by TradingView News. The offering would create the group's fourth listed entity alongside KPI Green Energy, KP Energy, and KP Green Engineering, as it pursues an ambitious plan to build 10 GW each of owned renewable-energy capacity and third-party EPC execution, along with 10 GWh of battery-storage capability by FY32. Sun Drops, a subsidiary of KPI Green Energy, is in the final stages of preparing its draft red herring prospectus and will house all battery energy storage system (BESS) projects, battery manufacturing operations, group-captive renewable projects, and EPC contracts of up to 50 MW. Under the recently restructured group framework, it will serve as the group's key platform for smaller renewable projects and energy storage.
According to Chairman Faruk G Patel, as reported by The Hindu BusinessLine, the future of renewable energy will be dependent on BESS, with customers seeking round-the-clock renewable power requiring a combination of solar, wind, and storage. "If you want to scale up your business, you have to be a mix of three things: solar, wind, and BESS," Patel stated. The strategy forms the backbone of KP 3.0, the group's roadmap through FY32, targeting 10 GW of owned renewable generation, 10 GW of third-party EPC execution, and 10 GWh of integrated battery capacity spanning cell manufacturing and BESS assembly. KPI Green combines customer-funded EPC projects with owned generation backed by long-term power contracts, while KP Energy anchors the group's wind business and KP Green Engineering provides manufacturing support.
As reported by The Hindu BusinessLine, KP Group has appointed battery technologist Erez Schreiber as CEO of its BESS business and plans to commission a 5 GWh BESS assembly facility in FY28, followed by a 5 GWh cell-manufacturing unit in FY29. Both capacities are expected to scale to 10 GWh each at a proposed 110-acre campus in Gujarat. The proposed ₹4,000-crore IPO would be KP Group's largest equity-market exercise yet, financing its attempt to move beyond simply building and generating renewable power towards owning generation, storing electricity, and supplying it when customers need it. The expansion comes as growth becomes increasingly capital intensive, with KPI Green's June-quarter profit falling 14% year-on-year to ₹95 crore as higher depreciation and finance costs weighed on earnings.
According to The Hindu BusinessLine, KP Energy reported a 57% rise in FY26 net profit to ₹181 crore with total income climbing to ₹1,506 crore, while its order book stood at 2.16 GW, valued at around ₹2,250 crore at the end of June. Management is targeting annual revenue growth of about 25% across group companies through FY32, while maintaining debt-to-equity ceilings of four times for KPI Green (excluding Sun Drops), three times for Sun Drops, and two times each for KP Energy and KP Green Engineering. The expansion comes as growth becomes increasingly capital intensive, with KPI Green's borrowings rising to ₹4,532 crore at the end of March from ₹1,125 crore a year earlier. KPI Green has already raised ₹1,300 crore through two QIPs and ₹670 crore via a green bond issue, while Sun Drops has secured about ₹430 crore ahead of its proposed listing.
