KPI Green Lines Up Sundrop Energia IPO, Bets Big on BESS

Gujarat-based renewable energy company KPI Green has announced plans to launch an Initial Public Offering (IPO) for its subsidiary Sundrop Energia. The company’s top management recently informed investors that the fundraising will primarily support Battery Energy Storage System (BESS) projects, which it sees as the next growth engine. The KP Group, founded by Faruk Patel, owns KPI Green, and has 3 listed entities already, namely, Solar EPC KPI Green Energy Limited, the Wind Energy focused KP Energy Limited, and fabrication of structures focused KP Green Engineering Limited , which is the flagship firm of the group that is listed only on the BSE. 

KPI Green has expertise in both Independent Power Producer (IPP) and Captive Power Producer (CPP) projects. In the latest post-earnings call, Salim Yahoo, Chief Financial Officer (CFO) of KPI Green, said the company has already started preparing the Draft Red Herring Prospectus (DRHP) for Sundrop.

“We will be listing Sundrop. We have already started collecting documents and will soon file the DRHP. We are raising equity at Sundrop to invest directly in build-own-operate BESS projects. As these are asset-heavy projects with ₹2,000–3,000 crore execution potential, we need a focused vehicle and fresh capital,” Yaho said.

As per the company’s strategy, Sundrop will handle smaller renewable and storage projects in the 0–35 MW category, while larger utility-scale projects will remain under KPI Green. Sundrop was initially a 100% subsidiary, but after a pre-IPO placement, KPI Green still retains majority control. The KP Group currently has three entities listed publicly KPI Green (for developing IPP and CPP), KP Energy (for wind energy projects) and KPI Green Engineering (fabrication and galvanizing). 

Why BESS Is Central to the Plan?

With BESS gaining prominence in India’s renewable landscape, KPI Green has identified storage as a strategic growth area that can deliver Round-the-Clock (RTC) green power.

“Only BESS can provide RTC stability for renewable energy,” Yahoo told investors, adding that most storage projects will have execution timelines of 18–24 months. While margins will be “initially modest,” the company sees strong long-term potential in this evolving segment.

KPI Green has already signed an MoU with Delta Electronics India for advanced storage solutions, solar inverters, and green hydrogen applications. “Our association with Delta gives us access to cutting-edge BESS technology,” Yahoo noted.

Sundrop will adopt a build-own-operate (BOO) model, offering storage-as-a-service, with all assets on Sundrop’s books — a key reason for the dedicated equity raise.

Execution Pipeline and Outlook

KPI Green reported its fifth consecutive quarter of record revenue, driven by expansion in both its IPP and CPP businesses. It is currently executing three major IPP projects:

• 250 MW solar project
• 370 MW solar-wind hybrid project
• 150 MW standalone wind project

Together, these projects represent an execution pipeline worth ₹5,000 crore, with long-term PPAs signed with Gujarat Urja Vikas Nigam Ltd (GUVNL).

As of June 30, 2025, KPI Green’s total portfolio stood at 4 GW (1.7 GW IPP + 2.3 GW CPP), supported by a 6,275-acre land bank and 3.2 GW of evacuation capacity. Orders in hand exceed 3 GW, including upcoming BESS projects where the company expects an 80–90% success ratio in tenders.

Yahoo added that KPI Green aims to increase the share of IPP revenue from the current 13% to around 25% in the long term, citing its higher EBITDA margin profile of 85–90%.