Sun Drops Energia's EGM Notice: Buying DEK & Mavericks at ₹32.66, Paying in CCPS at ₹351.02
· 6 min read · Written by the BuyUnlistedShares desk. Information only, not investment advice.
Sun Drops Energia’s EGM notice proposes acquiring up to 100% of DEK and Mavericks Green Energy for ₹55.80 crore through CCPS. Here’s a breakdown of the ₹32.66 share valuation, ₹351.02 CCPS issue price and the proposed transaction structure.
Sun Drops Energia Limited has issued a notice for an Extraordinary General Meeting (EGM) seeking shareholder approval for its board-approved acquisition of up to 100% equity in DEK and Mavericks Green Energy Limited (DMGEL), an independent solar EPC and project development company. The transaction is valued at ₹55.80 crore and, notably, involves no cash outflow — the entire consideration will be settled through the issuance of Compulsorily Convertible Preference Shares (CCPS).
Two different per-share prices appear in the same transaction: DMGEL's shares are being valued at ₹32.66 apiece, while the CCPS being handed over in payment are priced at ₹351.02 each. This piece walks through what that means, how the numbers fit together, and what happens next — as a plain summary of publicly available information, not a recommendation to act on.
Deal at a Glance
Why an EGM Is Needed
Because the acquisition is being funded through a fresh issuance of CCPS rather than cash, it effectively changes Sun Drops Energia's capital structure and brings in a new set of shareholders (DMGEL's existing owners). Transactions of this nature typically require approval from existing shareholders at an Extraordinary General Meeting, along with compliance with the relevant provisions of the Companies Act, 2013, before they can be completed.
Two Prices, One Deal — What's the Difference?
It's easy to read ₹32.66 and ₹351.02 side by side and assume something doesn't add up, but the two figures are valuing two entirely different things:
● ₹32.66 per share: the agreed price for DMGEL's own equity shares — this is what DMGEL's shareholders are effectively being paid for handing over their stake.
● ₹351.02 per CCPS: the issue price of Sun Drops Energia's own preference shares — this is the currency being used to make that payment, instead of cash.
In other words, DMGEL's shareholders aren't receiving ₹32.66 in cash per share; they're receiving Sun Drops CCPS (valued at ₹351.02 each) worth an equivalent amount until the total consideration adds up to the agreed ₹55.80 crore deal value.
How the ₹55.80 Crore Value Is Built
The number of CCPS being issued — up to 15,89,781 — is essentially a function of the total deal value divided by the CCPS issue price. Multiply the units by the price, and the total lines up with the ₹55.80 crore consideration agreed for DMGEL's shares:
● CCPS to be issued: up to 15,89,781 units
● Issue price per CCPS: ₹351.02
● Total deal value: ₹55.80 crore
What Is a CCPS, and Why Use One Here?
A Compulsorily Convertible Preference Share is a hybrid instrument — issued initially as a preference share but required to convert into ordinary equity at a later date under pre-agreed terms. For an acquirer, paying in CCPS rather than cash means:
● No immediate cash outflow, preserving liquidity for operations and growth.
● The seller receives a future equity-linked stake instead of a one-time payout.
● The transaction is paid in CCPS rather than cash.
What DMGEL Brings to the Table
DEK and Mavericks Green Energy Limited operate as independent solar EPC (engineering, procurement, and construction) and project development company, with services spanning utility-scale solar, rooftop solar, hybrid power solutions, battery storage, and transmission infrastructure. The company's turnover in recent years:
● FY24 turnover: ₹30.62 crore
● FY25 turnover (projected): ₹150.04 crore
● FY26 turnover (projected): ₹213.98 crore
What Happens After the EGM
● Shareholder vote: Sun Drops Energia's shareholders vote on the resolution at the EGM.
● Regulatory and procedural steps: The deal proceeds subject to compliance with applicable Companies Act provisions and other customary conditions.
● CCPS issuance: Upon approval, the CCPS are allotted to DMGEL's existing shareholders in exchange for their equity.
● Step-down subsidiary status: If Sun Drops Energia ends up holding 50% or more of DMGEL, DMGEL becomes a step-down subsidiary of Sun Drops' parent company.
● Targeted completion: The transaction is expected to be completed on or around September 30, 2026.
Frequently Asked Questions
1. What has Sun Drops Energia's EGM notice proposed?
The notice seeks shareholder approval for Sun Drops Energia to acquire up to 100% of the equity shares of DEK and Mavericks Green Energy Limited (DMGEL), an independent solar EPC and project development company, for a total consideration of ₹55.80 crore.
2. At what price is DMGEL being acquired?
The DMGEL equity shares are being purchased at ₹32.66 per share, which is the price used to value the target company's shares for the purposes of this transaction.
3. How will Sun Drops Energia pay for the acquisition?
The entire consideration will be paid in kind rather than cash. Sun Drops will issue up to 15,89,781 Compulsorily Convertible Preference Shares (CCPS) of its own to DMGEL's shareholders, priced at ₹351.02 per CCPS.
4. Why are there two different prices in this deal?
₹32.66 is the price at which DMGEL's own shares are being valued, while ₹351.02 is the issue price of the CCPS that Sun Drops is handing over as payment. The two numbers value different instruments in different companies — DMGEL's equity on one side, and Sun Drops' preference shares on the other — and together they determine how many CCPS need to be issued to match the ₹55.80 crore deal value.
5. What is a Compulsorily Convertible Preference Share (CCPS)?
A CCPS is a hybrid security that is issued as preference shares but is required to convert into equity shares at a later date, under pre-agreed terms. It lets a company raise or pay with capital that isn't immediately dilutive in the same way as ordinary equity, while still guaranteeing eventual conversion.
6. Why structure the payment as CCPS instead of cash?
Using CCPS avoids any cash outflow, which preserves Sun Drops Energia's liquidity for its core operations while still allowing it to complete the acquisition. It also gives DMGEL's shareholders an eventual equity stake in Sun Drops rather than a one-time cash payout.
7. What does DMGEL do?
DEK and Mavericks Green Energy Limited is an independent solar EPC (engineering, procurement, and construction) and project development company, offering services spanning utility-scale solar, rooftop solar, hybrid power, battery storage, and transmission infrastructure.
8. What happens to DMGEL after the deal?
If Sun Drops Energia acquires 50% or more of DMGEL's equity, DMGEL will become a step-down subsidiary of Sun Drops' parent company, bringing its EPC and project development capabilities in-house.
9. Is the deal already complete?
No. The transaction is subject to shareholder approval through the EGM process and compliance with applicable provisions of the Companies Act, 2013, along with other customary conditions, before it can be completed.
10. Is this blog a recommendation to buy or invest in these shares?
No. This article summarises publicly available information about a proposed corporate transaction for general informational purposes only. It is not investment, financial, or legal advice, and it is not a recommendation to buy, sell, or hold any security. Readers should do their own research or consult a qualified, registered advisor before making any financial decision.
Disclaimer:
This is written for educational and informational purposes only. Nothing here constitutes investment advice or a recommendation to buy or sell securities. All data is sourced from publicly available information. Investments in securities markets are subject to market risks — please read all offer documents carefully before investing.
