Dilip Buildcon Limited announced the approval of its Board of Directors to divest its stake in two Special Purpose Vehicles (SPVs) undertaking under-construction power transmission and solar projects. The combined project cost is approximately ₹8,400 crore. This divestment aligns with Dilip Buildcon’s strategy to build an asset-light development platform, enable capital recycling, and strengthen its balance sheet.
Dilip Buildcon Approves Stake Divestment in Key Projects
Dilip Buildcon Limited (DBL) has received approval from its Board of Directors to divest its stake in two crucial Special Purpose Vehicles (SPVs): Mekhali Power Transmission Limited and DBL Renewable Private Limited. These SPVs are currently involved in under-construction power transmission and solar projects, with a combined total project cost estimated at approximately ₹8,400 crore.
Project Details and Strategic Alignment
Mekhali Power Transmission Limited is developing a 400 kV/220 KV sub-station and approximately 470 circuit kilometres of transmission lines in Belagavi District, Karnataka. DBL Renewable Private Limited is developing a significant solar portfolio comprising 1,363 MW (AC) / 1,977 MWp (DC) across 163 locations in Madhya Pradesh. The consideration for this transaction will be managed through a phased subscription and closing mechanism, with definitive agreements yet to be signed.
This divestment is a key step in DBL’s strategy to transition into an asset-light, multi-asset development platform. The move aims to generate recurring cash flows, enable capital recycling for new investments, and further deleverage and strengthen the company’s balance sheet. The transaction is subject to the execution of definitive agreements, fulfilment of terms and conditions, and receipt of necessary regulatory approvals.
Partnership and Future Outlook
The stake is being divested to Alpha Alternatives Fund Advisors LLP and/or its affiliates. Alpha Alternatives views this as a value-unlocking opportunity and an affirmation of their confidence in Dilip Buildcon’s execution capabilities. DBL’s Managing Director & CEO, Mr. Devendra Jain, stated that this transaction marks an important milestone in their DBL 2.0 journey, enabling capital recycling and reinforcing a disciplined focus on balance sheet strengthening.
Source: BSE
