Kalpataru Projects International Limited (KPIL) has announced the acquisition of the remaining 35% equity stake in its Saudi Arabian joint venture, Kalpataru IBN Omairah Company Limited (KIOCL). The deal, signed on February 23, 2026, costs SAR 10 Million and will make KIOCL a wholly owned subsidiary. This move is strategic, aiming to strengthen KPIL’s presence and operational control within the Kingdom of Saudi Arabia market.
Completion of Subsidiary Acquisition in KSA
Kalpataru Projects International Limited (KPIL) confirmed that it has finalized an agreement to acquire the balance 35% equity stake in Kalpataru IBN Omairah Company Limited (“KIOCL”). This transaction elevates KPIL’s shareholding from the existing 65% to a full 100%, thereby transforming KIOCL into a wholly owned subsidiary. The Share Sale, Exit, and Release Agreement was executed on February 23, 2026, in the Kingdom of Saudi Arabia.
Strategic Rationale and Impact
The primary objective of this acquisition is to further strengthen the Company’s presence in the Kingdom of Saudi Arabia market. KIOCL’s core business is highly similar to KPIL’s, focusing on the EPC engagement in Power Transmission, Distribution, and Substation works. By gaining full ownership, KPIL secures complete operational control and benefits directly from 100% of KIOCL’s future performance.
Transaction Details
The acquisition involves acquiring 175 equity shares representing the 35% stake. The total cost of acquisition for this balance stake is stated to be an amount of SAR 10 Million. The consideration will be settled via cash payment through banking channels. The completion of the share transfer is anticipated to occur on or before May 31, 2026, pending customary regulatory approvals from Saudi authorities.
KIOCL Financial Snapshot (as of March 31, 2025)
The financial performance of the target entity, KIOCL, for the fiscal year ended March 31, 2025, provides context for the acquisition:
- Approx. Turnover: SAR 90.79 Million (~USD 24.21 Million)
- Profit/(Loss) after Tax: Approx. SAR (22.96) Million (~USD (6.12) Million)
- Net Worth: Approx. SAR (53.94) Million (~USD (14.38) Million)
Historical turnover data shows a significant year-over-year increase leading up to FY25:
- FY23 Approx. Turnover: SAR 46.13 Million
- FY24 Approx. Turnover: SAR 268.25 Million
- FY25 Approx. Turnover: SAR 90.79 Million
KPIL confirmed that this transaction does not constitute a related party transaction, as the remaining 35% equity is being purchased from an unrelated third party shareholder.
Source: BSE
