Dilip Buildcon to sell stake in Mekhali Power to Alpha Alternatives for Rs 2,171 crore
In a significant move, Dilip Buildcon plans to divest its Mekhali Power Transmission stake valued at Rs 2,171 crore, with acquisition by Alpha Alternatives slated following the project's commissioning. This strategic pivot reinforces Dilip Buildco...
By PTI |
New Delhi: Infrastructure company Dilip Buildcon on Thursday announced the divestment of its stake in Mekhali Power Transmission to Alpha Alternatives Fund Advisors for Rs 2,171 crore.
Mekhali Power Transmission Limited is engaged in developing, designing and engineering a 400-kilovolt substation power transmission project extending to approximately 470 circuit kilometres situated in Belagavi District, Karnataka, Dilip Buildcon Limited (DBL) said in a statement.
"Alpha Alternatives has agreed to fully acquire DBL's 51 per cent equity stake after the project is commissioned.
"This buyout is valued at an enterprise value of approximately Rs 2,914 crore, subject to pre-agreed closing adjustments and conditions precedent," it said.
The proposed divestment advances DBL's asset-light DBL 2.0 strategy, enabling capital recycling and balance sheet deleveraging, it added.
The project is being developed pursuant to a Transmission Service Agreement dated May 30, 2026, with Karnataka Power Transmission Corporation Limited (KPTCL), on a build-own-operate-transfer (BOOT) basis, with commercial operations targeted around mid-2028.
Devendra Jain, Managing Director and CEO at Dilip Buildcon Limited, said, "Our partnership with Alpha Alternatives across this transmission project enables us to recycle capital early in the asset lifecycle, while maintaining our disciplined focus on strengthening our balance sheet and building a more asset-light business".
JM Financial Limited is the exclusive financial advisor for the deal, and Khaitan & Co acted as the legal advisor to Dilip Buildcon.
AZB & Partners acted as the legal advisor to Alpha Alternatives.
Kaushal Biyani, Senior Partner and Head, Private Markets, Alpha Alternatives, said, "We continue to deepen our investment in high-quality, long-term infrastructure assets and see strong growth potential in India's power and renewable energy sectors".
Established in 1987, Dilip Buildcon Limited is a diversified infrastructure company.
Mekhali Power Transmission Limited is engaged in developing, designing and engineering a 400-kilovolt substation power transmission project extending to approximately 470 circuit kilometres situated in Belagavi District, Karnataka, Dilip Buildcon Limited (DBL) said in a statement.
"Alpha Alternatives has agreed to fully acquire DBL's 51 per cent equity stake after the project is commissioned.
"This buyout is valued at an enterprise value of approximately Rs 2,914 crore, subject to pre-agreed closing adjustments and conditions precedent," it said.
The proposed divestment advances DBL's asset-light DBL 2.0 strategy, enabling capital recycling and balance sheet deleveraging, it added.
The project is being developed pursuant to a Transmission Service Agreement dated May 30, 2026, with Karnataka Power Transmission Corporation Limited (KPTCL), on a build-own-operate-transfer (BOOT) basis, with commercial operations targeted around mid-2028.
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Devendra Jain, Managing Director and CEO at Dilip Buildcon Limited, said, "Our partnership with Alpha Alternatives across this transmission project enables us to recycle capital early in the asset lifecycle, while maintaining our disciplined focus on strengthening our balance sheet and building a more asset-light business".
JM Financial Limited is the exclusive financial advisor for the deal, and Khaitan & Co acted as the legal advisor to Dilip Buildcon.
AZB & Partners acted as the legal advisor to Alpha Alternatives.
Kaushal Biyani, Senior Partner and Head, Private Markets, Alpha Alternatives, said, "We continue to deepen our investment in high-quality, long-term infrastructure assets and see strong growth potential in India's power and renewable energy sectors".
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Established in 1987, Dilip Buildcon Limited is a diversified infrastructure company.
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