Infra company DBL to divest stakes worth Rs 8,400 cr in Mekhali, DBL Renewable Ltd
New Delhi, Aug 11 : Dilip Buildcon Limited (DBL), India’s leading multi-asset infrastructure companies, today announced divestment of its stakes to the tune of Rs 8,400 crore (approx) in Mekhali Power Transmission Limited and DBL Renewable Private Limited.
The divestment of stakes in the SPVs undertaking the Company’s under-construction power transmission and solar projects, respectively, would go in favour of Alpha Alternatives Fund Advisors LLP and/or its affiliates and/or funds managed by Alpha Alternatives Fund Advisors LLP.
The decision was taken at a meeting of DBL’s Board of Directors held yesterday.
Mekhali Power Transmission Limited is engaged in developing, designing and engineering a 400-kilovolt sub-station power transmission project extending to approximately 470 circuit kilometres situated in Belagavi District, Karnataka.
DBL Renewable Private Limited is engaged in the development, design and engineering of a 1,363 MW (AC) / 1,977 MWp (DC) solar portfolio, comprising 10 SPVs with solar assets across Madhya Pradesh.
The consideration for the transaction will be determined through a phased subscription and closing mechanism, in accordance with the terms agreed between the parties.
The definitive agreements for the transaction are yet to be signed.
The transaction is subject to the execution of definitive agreements, fulfilment of the terms and conditions set out therein, and receipt of requisite regulatory approvals.
The divestment represents a value-unlocking opportunity for DBL and is aligned with the Company’s strategy of building an asset-light, multi-asset development platform focused on generating recurring cash flows and enabling capital recycling for reinvestment in new opportunities, the company said.
The transaction also supports the Company’s continued efforts to deleverage and strengthen its balance sheet, while further deepening its existing long-term partnership with Alpha Alternatives, it added in a statement.
ABOUT DILIP BUILDCON LIMITED
Established in 1987, Dilip Buildcon Limited (“DBL”) is a diversified infrastructure Company with over three decades of execution experience across large-scale infrastructure development projects in India.
The Company is present across 20 states and 1 Union Territory, supported by a workforce of 21,221 employees and a fleet of over 10,394 equipment units.
Through DBL 2.0, the Company is strategically transitioning from a pure-play EPC contractor into a diversified multi-asset infrastructure platform focused on building long-duration contracted businesses and sustainable cash-flow-generating assets.
DBL largely operates across multiple verticals, including roads and highways, rail and metro, airports, coal and bauxite mining, ICT, industrial corridors, irrigation, tunnels, special bridges, urban development, renewable energy, power transmission, operations and maintenance, and petroleum and natural gas. (BVI)
