KPI Green Energy will acquire 507.9 MW of operational wind assets in Gujarat from Saudi Arabia-based Alfanar Group for an enterprise value of about Rs. 24.1 bn. The transaction will increase the company’s total operating and under-development capacity to around 1.6 GW and is expected to close by February 28, 2027.

The portfolio consists of 301.4 MW held by Alfanar Energy and 206.5 MW held by Netra Wind. KPI Green Energy said the acquisition values the assets at about Rs. 48 mn per MW, compared with an estimated Rs. 75-80 mn per MW required to develop a new wind project.

More than Rs. 20 bn of the enterprise value comprises debt, while the balance represents equity. The two portfolios have long-term power purchase agreements with the Solar Energy Corporation of India, providing contracted revenue visibility for about 21 years on a capacity-weighted basis.

The acquisition forms part of KP Group’s KP 3.0 strategy, which targets 10 GW of independent power producer capacity through KPI Green Energy by FY32. The group is also targeting 10 GW of renewable engineering, procurement and construction execution for third-party customers, as well as 10 GWh of integrated battery manufacturing capacity covering cells and battery energy storage systems.

KPI Green Energy said the 10-GW independent power producer target would require investment of around Rs. 300 bn, funded through a combination of debt and equity. The group expects annual profit after tax of around Rs. 8 bn to support the equity requirement. Cell and battery energy storage system manufacturing facilities would require another Rs. 45 bn, to be funded through internal accruals and part of the proceeds from an initial public offering.