Shares of KPI Green Energy climbed over 5 per cent in Thursday’s trade after the company secured a sanction of Rs 3,200 crore from State Bank of India (SBI) for its Solar and Hybrid Independent Power Producer (IPP) projects aggregating 1+ GWp in Gujarat.
The sanction comprised both fund-based and non-fund based facilities, to part-finance the development of its 250 MW Solar Project and 370 MW Hybrid Project in Gujarat, together aggregating over 1 GWp of the KPI’s Independent Power Producer (IPP) portfolio.
Following thge development, the stock opened 2.23 per cent higher at Rs 475 on BSE. Later, the stock rose 5.18 per cent to hit a high of Rs 488.75. KPI Green said the sanctioned facilities will support two strategically significant renewable projects, which are secured by 25-year long-term Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited (GUVNL) and are being developed in the Bharuch and Surendranagar districts of Gujarat.
In a filing to NSE and BSE, KPI Green said the sanction highlighted the confidence of India’s largest public sector bank in KPI Green Energy’s technical expertise, execution track record, and financial strength.
“The projects will be funded with a 75:25 debt-equity ratio, with proceeds earmarked for project cost financing, reimbursement of incurred expenditure, and related development expenses,” it said.
Faruk Patel, Chairman & Managing Director, KPI Green Energy Limited, stated said the sanction from the State Bank of India is a strong validation of KPI Green Energy’s capabilities and long-term vision.
He said financing is a critical enabler of large-scale infrastructure, and this partnership empowers us to accelerate capacity addition under India’s renewable transition.
“With over 1 GWp of new capacity being developed, we will significantly expand our operational portfolio, strengthen annuity income streams, and create long term value for all stakeholders.
We remain fully committed to delivering these projects ahead of stipulated timelines and setting new benchmarks in execution excellence.”
Upon commissioning, these two projects will make a substantial contribution to KP Group’s 10 GW target by 2030.
“Revenue recognition will begin through long-term PPAs, strengthening recurring revenue streams and profitability. The projects will eliminate over 1.5 million tonnes of CO₂ emissions annually-an
environmental benefit equivalent to planting more than 65 million trees every year- reinforcing our commitment to a greener, more sustainable future,” Patel said.