Key Quantitative Figures

  • Previous approval limit for related party transactions with Sun Drops Energia Limited: ₹1,000 crore (approved at AGM on September 25, 2024)
  • Proposed transaction limits for FY 2026-27:
  • Sales/Purchase of Goods/Services: Up to ₹1,000 crore
  • Investments: Up to ₹1,000 crore
  • Loans & Advances: Up to ₹3,000 crore
  • Lease Rental of Property: Up to ₹500 crore
  • Shared Services: Up to ₹500 crore
  • Other Transactions: Up to ₹500 crore
  • Sun Drops Energia Limited financial performance (FY 2025-26 standalone basis):
  • Turnover: ₹582.40 crore
  • Profit After Tax: ₹97.07 crore
  • Net Worth: ₹701.18 crore
  • Percentage of annual consolidated turnover represented by proposed transactions:
  • For KPI Green Energy Limited: 185.46% (sales/purchases) and 55.64% (other transactions)
  • For Sun Drops Energia Limited: 858.51% (sales/purchases) and 257.55% (other transactions)

Parties Involved

  • Related Party: Sun Drops Energia Limited (formerly Sun Drops Energia Private Limited), subsidiary
  • Scrutinizer: Mr. Chirag Shah (primary), Mr. Raimeen Maradiya (alternate) of M/s. Chirag Shah & Associates
  • E-voting service provider: Central Depository Services (India) Limited (CDSL)
  • Registrar & Transfer Agent: Bigshare Services Private Limited
  • Stock Exchanges: BSE Limited, National Stock Exchange of India Limited

Purpose/Rationale

The company seeks shareholder approval for enhanced limits for material related party transactions with its subsidiary Sun Drops Energia Limited due to expected increase in transaction volumes that may exceed previously approved limits. The transactions are stated to be in the ordinary course of business and at arm's length basis.

Financial/Operational Impact

The proposed transactions are expected to facilitate operational efficiency, business growth and optimal resource utilization. The company indicates these are aligned with its business objectives in renewable energy development, construction, ownership and operation of solar and renewable energy projects.

Capital Structure Impact

No direct impact on capital structure disclosed. The transactions involve potential investments in equity shares, preference shares, debentures or other debt instruments of the subsidiary, but specific dilution effects are not quantified.

Cash Flow Implications

Potential outflows for investments, loans, and advances to the subsidiary up to the approved limits. The source of funds is indicated as "own funds of the Company."

Governance Details

  • Audit Committee approved the transactions at meeting held on August 11, 2026
  • Board of Directors approved and recommends the resolution
  • Related parties shall not vote on the resolution as per SEBI Listing Regulations
  • Dr. Faruk G. Patel, Chairman & Managing Director, is identified as related through his directorship in both companies

Voting Procedures

  • Remote e-voting exclusively through CDSL platform
  • No physical ballot forms or envelopes being sent
  • Members must register email addresses to participate
  • Detailed voting instructions provided for different shareholder categories (demat, physical, individual, non-individual)
  • Scrutinizer appointed to ensure fair and transparent process

Additional Information

The Postal Ballot Notice is available on company website (www.kpigreenenergy.com), stock exchange websites, and CDSL website (www.evotingindia.com).