Kalpataru Projects International Limited has successfully completed the acquisition of the remaining 35% equity stake in its Saudi Arabian joint venture, formerly known as Kalpataru IBN Omairah Company Limited. With this transaction finalized on April 26, 2026, the entity is now a wholly owned subsidiary of the company. This strategic move is set to bolster the company’s presence in the Kingdom of Saudi Arabia’s power transmission and distribution infrastructure market.
Full Control of Saudi Subsidiary
Following the agreement signed in February 2026, Kalpataru Projects International Limited has received all necessary regulatory approvals to complete its buyout of the remaining 35% stake from its joint venture partner, BIN Omairah Contracting Company Limited. The transition to a wholly owned subsidiary model, effective from April 14, 2026, allows the company to integrate its Saudi Arabian operations fully into its global business structure.
Strategic Rationale and Market Impact
The subsidiary, now operating as Kalpataru Projects Arabia Company, is actively involved in executing high-value projects, including high voltage transmission lines and sub-station works within Saudi Arabia. By increasing its stake from 65% to 100%, the parent company aims to streamline its project management capabilities and strengthen its competitive edge in one of the region’s most rapidly expanding infrastructure markets.
Financial Context
The deal was concluded for a consideration of SAR 10 million, settled through standard banking channels. The target entity has demonstrated significant operational scale, with a turnover reaching SAR 90.79 million for the fiscal year ending March 31, 2025. This acquisition aligns with the company’s long-term objective of scaling its international footprint and driving sustainable growth in the EPC (Engineering, Procurement, and Construction) sector.
Source: BSE
