Dilip Buildcon Limited (DBL) has announced the execution of definitive agreements to divest its stake in a ~1,363 MW under-construction solar portfolio for an enterprise value of approximately ₹6,829 crore. This move aligns with DBL’s ‘DBL 2.0’ strategy, focusing on an asset-light model, capital recycling, and balance sheet deleveraging. The transaction is with Alpha Alternatives and is subject to regulatory approvals.
DBL Divests Solar Assets Valued at ₹6,829 Crore
Dilip Buildcon Limited (DBL) has finalized agreements to divest its stake in ten special purpose vehicles (SPVs) that hold its under-construction solar portfolio. The total enterprise value for this transaction is approximately ₹6,829 crore. This strategic divestment is a key step in DBL’s transition towards an asset-light, multi-asset development platform, as outlined in its ‘DBL 2.0’ strategy.
Key Transaction Highlights
The solar portfolio, developed through its wholly-owned subsidiary DBRL Renewable Private Limited, comprises approximately 1,363 MW (AC) of grid-connected solar photovoltaic capacity across 163 locations in Madhya Pradesh. The total project cost is estimated at ₹6,263 crore, with an estimated equity investment of approximately ₹1,253 crore. DBRL and Alpha Alternatives have agreed to fund the equity portion of the project cost in a 51:49 ratio during the construction period. Upon completion, Alpha Alternatives-led Funds/InVIT will acquire DBL’s remaining 51% stake.
Strategic Rationale and Impact
This divestment is designed to generate recurring cash flows, enable capital recycling for reinvestment in new opportunities, and strengthen DBL’s balance sheet. Mr. Devendra Jain, Managing Director & CEO of Dilip Buildcon Limited, stated that this transaction is a significant milestone in the DBL 2.0 journey, enabling the company to recycle capital early in the asset lifecycle while maintaining a disciplined focus on strengthening its balance sheet and building a more asset-light business.
Project Details and Offtake Agreements
The solar portfolio is being developed under the Feeder Level Solarization component of the PM-KUSUM Component C scheme. Power generated from these projects will be supplied under long-term power purchase agreements (PPAs) with Madhya Pradesh Power Management Company Limited (MPPMCL), the designated offtaker for the portfolio. Commercial operations are targeted to commence around September 2027.
Advisors to the Transaction
JM Financial Limited served as the exclusive financial advisor to Dilip Buildcon for this transaction, with Khaitan & Co. acting as the legal advisor. AZB & Partners advised Alpha Alternatives on legal matters.
Source: BSE
