KPI Green Energy Soars to New Heights: Raises Rs. 300 Crores in Oversubscribed QIP

Surat (Gujarat): KPI Green Energy ltd, has raised Rs. 300 crores (Rs. 3 billion) through a Qualified Institutional Placement (QIP) by issuing shares to Qualified Institutional Buyers (QIBs), marking a major milestone in its journey. 

It is worth noting that KPI Green Energy had announced fundraising through QIP in September 2023. This followed the successful securing the tender from Gujarat Urja Vikas Nigam Limited's to develop 240 MW (DC) solar project in Khavda Solar Park in Gujarat.

In a meeting on December 22, the Board of KPI Green Energy approved the issuance and allotment of 25,35,925 shares to the eligible QIBs. The shares were issued at a 5% discount to the floor price of Rs. 1,245. Following the allotment of the shares under the QIP, the company’s paid-up equity share capital increased from Rs. 377 million to Rs. 402 million.

The QIP was oversubscribed by three times within hours of opening, reflecting the overall trust of large institutional investors in KP Group and its growth prospects. SBI Capital Markets was the book running lead manager (BRLM).
In total, 29 institutional investors were allocated shares in the QIP, comprising a mix of distinguished international and domestic participants, including leading investment banks, private equity firms, mutual funds, banks, hedge funds and family offices. The list includes the likes of Goldman Sachs (Singapore), Quant Mutual Fund, Morgan Stanley Asia (Singapore), Bengal Finance and Investment, Bank of America Securities Europe SA, JM Financial Mutual Fund, Citigroup Global Markets Mauritius, SBI General Insurance Company Limited, Société Générale, Copthall Mauritius Investment Limited, Eastbridge Capital Master Fund, ITI Mutual Fund, Vikasa India, Alpha Alternatives Financial Services, Subhkam Ventures, Leading Light Fund, Cognizant Capital, Yes Bank, Navi Finserv, Rajasthan Global Securities, Meru Investment, Minerva Emerging Opportunities Fund, Brescon Special Situations Fund, Astorne Capital, and Coeus Global. 

Dr Faruk G Patel, Chairman and Managing Director of KPI Green Energy, said, “We are thrilled by the overwhelming response to our QIP issue. The triumph of the offering not only underscores the trust that the international and domestic investor community places in the vision and growth potential of KPI Green Energy but also signifies the increasing interest of global investors in India's renewable energy sector.

The fundraise also opens several growth avenues for us. We are committed to play a key role in India’s transition to green energy.”

As of September 30, 2023, KPI Green has completed the development of more than 340 MW solar-hybrid power projects. This includes 140+ MW in the independent power producer (IPP) segment and 200+ MW as captive power projects (CPP). The company’s order book as on date stands in excess of 750 MW and it is surging ahead to achieve its goal of 1 GW (1,000 MW) projects by 2025.

KPI Green Energy Ltd, listed in 2019 has been a multibagger stock, increasing its market capitalisation from Rs 127 crores to Rs 5,384 crores (42x growth) as on 28th December 2023.