Gujarat-based KP Group is planning a ₹4,000-crore IPO of Sun Drops Energia (Sun Drops) within the next 10-12 months, according to people familiar with the matter. 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. Under a recently restructured group framework, it will house all battery energy storage system (BESS) projects, battery manufacturing operations, group-captive renewable projects, and EPC contracts of up to 50 MW, making it the group’s key platform for smaller renewable projects and energy storage.
Renewable energy future
“The future of renewable energy will be dependent on BESS,” Chairman Faruk G Patel told businessline. Customers seeking round-the-clock renewable power will increasingly require a combination of solar, wind, and storage, he said.
“If you want to scale up your business, you have to be a mix of three things: solar, wind, and BESS.”
The strategy forms the backbone of KP 3.0, the group’s roadmap through FY32. The target includes 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. KP Energy reported a 57 per cent rise in FY26 net profit to ₹181 crore, with total income climbing to ₹1,506 crore. Its order book stood at 2.16 GW, valued at around R ₹2,250 crore, at the end of June.
Sun Drops will add the storage component to the group’s renewable ecosystem. KP has appointed battery technologist Erez Schreiber as CEO of its BESS business. The company plans to commission a 5 GWh BESS assembly facility in FY28, followed by a 5 GWh cell-manufacturing unit in FY29. Over time, both capacities are expected to scale to 10 GWh each at a proposed 110-acre campus in Gujarat.
Capital intensive growth
The expansion comes as growth becomes increasingly capital intensive. KPI Green’s June-quarter profit fell 14 per cent year-on-year to ₹95 crore as higher depreciation and finance costs weighed on earnings. Borrowings rose to ₹4,532 crore at the end of March from ₹1,125 crore a year earlier.
Management is targeting annual revenue growth of about 25 per cent 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.
Patel said 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.
“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,” said a market analyst tracking the group’s growth.