KPI Green signs a ₹2,410 crore binding offer for 507.9 MW of operating wind, a deal a third of its market cap

At 10:12 on Wednesday morning, mid-session, KPI Green Energy told the exchanges it had signed a binding offer — dated September 29, 2026 — to acquire 100% of the equity and all equity-like instruments of Alfanar Energy Private Limited and Netra Wind Private Limited, two companies that together own 507.9 MW of operational wind projects at Bhuj, Gujarat. The enterprise value is approximately ₹2,410 crore, to be paid in cash. Against KPI Green's own market capitalisation of roughly ₹7,222 crore at Wednesday's close, this is a transaction about a third the size of the company undertaking it. The stock, which had rallied 34% off its September 16 low into the announcement, finished the session down 1.6% at ₹365.40.

What is being bought is disclosed in the Regulation 30 annexure. AEPL, incorporated in December 2016, reported turnover of ₹192.69 crore in FY 2022-23, ₹189.18 crore in FY 2023-24 and ₹168.47 crore in FY 2024-25 — a declining series. NWPL, incorporated in January 2018, was not operational in FY 2022-23 and reported ₹67.06 crore in FY 2023-24 and ₹108.98 crore in FY 2024-25 — still ramping. Both are Indian renewable-energy companies; the filing gives no profit figures, no debt figures, and does not state how the cash consideration will be funded.

The arithmetic the filing enables: ₹2,410 crore of enterprise value over 507.9 MW works out to roughly ₹4.7 crore per MW of operational wind. The two targets' combined FY 2024-25 turnover is ₹277.45 crore (₹168.47 crore plus ₹108.98 crore), so the enterprise value is about 8.7× combined turnover. Whether that is expensive or fair depends on the targets' tariffs, counterparties and debt — none of which the filing discloses; enterprise value includes whatever debt sits inside the two companies, so the equity cheque itself is not stated. The funding question lands on a P&L where consolidated interest cost has already more than doubled year-on-year, to ₹79.75 crore in Q1 FY27 from ₹38.20 crore in Q1 FY26.

The announcements landed on a stock already in motion. From a close of ₹276.35 on September 16 — the session of its 52-week adjusted low of ₹272 — the stock rose 13.0% on September 21 on 18.3 million shares, its heaviest volume of the last 60 sessions, and a further 7.8% the next day on 10.8 million shares. On September 22 the company replied to a BSE clarification query, stating that no announcement, including any pending announcement, was due to be intimated and that the volume movement was purely market-driven. The binding offer now disclosed carries a date of September 29 — a week after that reply. By Tuesday's close the stock had recovered 34% from the September 16 low; Wednesday's disclosure was met with a 1.6% decline.

The longer tape frames both the rally and the muted reaction. The stock remains 32.6% below its 52-week adjusted high of ₹542.25, set on November 3, 2025. The Q1 FY27 results session on August 11 saw a 5.0% fall on 11.8 million shares, and the slide continued to the September 16 low before the late-September reversal. A stock that has already priced in two days of large announcements taking a breather on the confirmation is not unusual; equally, a cash acquisition of this size disclosed without funding details gives the market something to weigh. Which reading is right will show in the sessions after the definitive documents — and the financing — are disclosed.

Q1 FY27 consolidated revenue of ₹693.84 crore grew 15.1% over Q1 FY26's ₹602.94 crore but fell sequentially from Q4 FY26's ₹795.81 crore. Net profit of ₹94.63 crore was 15.0% below the ₹111.32 crore of the year-ago quarter — and the line that explains much of the gap is interest: ₹79.75 crore in Q1 FY27 against ₹38.20 crore in Q1 FY26. That is the balance-sheet backdrop against which a ₹2,410 crore cash acquisition will be funded, and why the financing structure is the single most consequential undisclosed detail of this transaction.

The acquisition also sits inside a busy operational stretch that the company's own filings document. An August 26 press release reported 630+ MW DC of capacity energised across IPP and EPC/CPP businesses in the June–August quarter, described as its highest ever; an August 28 release put the total IPP portfolio at 2.57 GWp, of which roughly 1.16 GWp is energised and about 1.41 GWp under active execution. The company's existing operational wind exposure in these filings runs through wind-solar hybrid projects — such as the 370 MW AC hybrid IPP at Bharuch under a long-term power purchase agreement with Gujarat Urja Vikas Nigam Limited — while the same August 28 release lists standalone wind still in development: a 150 MW wind project that has achieved financial closure, and a 300 MW wind IPP project where PPA signing is under process. That is why the press release frames 507.9 MW of standalone operating wind as a step-up rather than a continuation. Promoters held 49.40% as of June 30, 2026, marginally down from 49.49% in March on an unchanged promoter share count.