Shares of KPI Green Energy tumbled 2% on 12 October after the company’s Board of Directors approved the acquisition of a power generation company.

In its board meeting held on 11 October, the board approved acquiring 9,990 equity shares that represent a 99.90% stake in KPark Sunbeat Private Ltd for a total consideration of Rs 126 crore.

In its exchange filing, the company said, “The Purchase Consideration payable shall be discharged by way of issue and allotment of 15,18,480 equity shares of the Company having face value of Rs 10 each, at an issue price of Rs 830.15 per equity shares, on a preferential basis to Dr Faruk G. Patel, promoter of the Company and balance through cash consideration.”

The said transaction is to be done at arm’s length.

The issuance is subject to the approval of members of the company and regulatory authorities as may be required.

KPark Sunbeat Private Limited is in the business of solar power projects and is planning to set up a 70-megawatt solar park at Dhrangadhra and a 30-megawatt park in Surat, Gujarat. The company also owns 2,11,67 square meters of land at Surendranagar in the state for solar power projects.

At 1:14 pm, the shares of KPI Green Energy were trading at Rs 866 or 2.19% below its previous close on NSE.