Dilip Buildcon to sell stake in 1.98 GWp solar portfolio to Alpha Alternatives

Dilip Buildcon Ltd, a multi-asset infrastructure company in India, announced that its Board of Directors has approved the proposal to divest its stake in its special-purpose vehicles (SPVs) Mekhali Power Transmission Ltd and DBL Renewable to Alpha Alternatives Fund Advisors and/or its affiliates and/or funds managed by Alpha Alternatives Fund Advisors (Alpha Alternatives). The combined total project cost is approximately INR 8,400 crore.

Mekhali Power Transmission is engaged in developing, designing and engineering a 400kV sub-station power transmission project extending to approximately 470 circuit kilometres situated in Belagavi District, Karnataka.

DBL Renewable is engaged in the development, design, and engineering of a 1,363 MW (AC)/1,977 MWp (DC) solar portfolio comprising ten SPVs with solar assets across Madhya Pradesh under the feeder level solarization component of the PM-KUSUM Component C scheme. Power from the projects will be supplied under long-term power purchase agreements (PPAs) with Madhya Pradesh Power Management Co. Ltd (MPPMCL), the offtaker for the portfolio.

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 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,” stated Dilip Buildcon Ltd. “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.”

Devendra Jain, managing director & CEO, Dilip Buildcon Ltd, said, “This transaction marks an important milestone in our DBL 2.0 journey as we build a multi-asset infrastructure platform anchored by long-duration, contracted assets. Our partnership with Alpha Alternatives across these transmission and solar projects enables us to recycle capital early in the asset lifecycle, while maintaining our disciplined focus on strengthening our balance sheet and building a more asset-light business.”

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.

JM Financial Limited acted as the exclusive financial advisor to Dilip Buildcon for the transaction, while Khaitan & Co acted as the legal advisor to DBL.