KPIL Completes Sale Of Equity Stake In Its Wholly Owned Subsidiary Vindhyachal Expressway Private Limited

Kalpataru Projects International Limited (KPIL), one of the leading EPC players in the power transmission and distribution (T&D) and civil infrastructure sector, today announced that it has successfully completed the sale of its 100% equity stake in its wholly owned subsidiary, Vindhyachal Expressway Private Limited (VEPL) to growth market sustainable infrastructure investor, Actis. The definitive agreement(s) were executed on October 9, 2024 to transfer the entire stake in VEPL to Actis, at an agreed Enterprise Value of ~ Rs. 775 crores (subject to necessary closing adjustments).

VEPL is a Special Purpose Vehicle (SPV) and was formed to undertake four-laning road project spanning 89.30 KMs connecting main city of Rewa and Hanumana on border of the states of Madhya Pradesh and Uttar Pradesh on the national highway section (NH)-7. The project is under concession from Madhya Pradesh Road Development Corporation (MPRDC) on Design, Build, Finance, Operate and Transfer (DBFOT) –Toll basis. The concession agreement between VEPL and MPRDC was executed in January 2012 and toll collections started on February 2015.

Commenting on the development, Manish Mohnot, MD & CEO, KPIL, said, “This is a landmark event for KPIL. The strategic divestment of our four transmission assets previously, and the current sale transaction of VEPL, demonstrates KPIL’s track record in developing, operating and successfully divesting long-term infrastructure developmental assets. These divestments are consistent with KPIL’s strategy to optimising value through the disposal of non-core assets, whilst continuing to invest in core EPC business to speed-up growth and scale, as well as contributing to achieving our targeted returns ratio.”

Equirus Capital Private Limited was Transaction Advisor and Khaitan & Co was Legal Advisors to KPIL for this deal. Anangram Partners was Legal Advisor to Actis for this deal.