DBL unlocks value with power transmission stake deal with Alpha Alternatives

Alpha Alternatives to fully acquire DBL's 51 percent equity stake on project commissioning

 

Mumbai: Dilip Buildcon Limited (DBL) has executed definitive agreements with Alpha Alternatives for the divestment of its stake in Mekhali Power Transmission Limited (MPTL), the special purpose vehicle developing the company's under-construction power transmission project in Karnataka. The divestment represents a value-unlocking opportunity for DBL.

MPTL is developing a 400 kV sub-station along with approximately 470 circuit kilometres of transmission lines in Belagavi district, with a total estimated project cost of around ₹2,171 crore.

Under the arrangement, DBL and Alpha Alternatives are funding the project's equity portion in a 51:49 ratio, with total estimated equity investment of approximately ₹429 crore. Alpha Alternatives has agreed to fully acquire DBL's 51 percent equity stake once the project is commissioned, in a buyout valued at an enterprise value of approximately ₹2,914 crore, subject to pre-agreed closing adjustments and conditions precedent.

The project is being developed on a build-own-operate-transfer (BOOT) basis under a transmission service agreement with Karnataka Power Transmission Corporation Limited, with commercial operations targeted around mid-2028.

Mr. Devendra Jain, Managing Director & CEO, Dilip Buildcon Limited, said, “This transaction execution marks an important milestone in our DBL 2.0 journey as we build a multi-assets infrastructure platform anchored by long-duration, contracted assets. Our partnership with Alpha Alternatives across this transmission project 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.”

Mr. Kaushal Biyani, Senior Partner and Head, Private Markets, Alpha Alternatives, said, “This transaction execution reaffirms our confidence in our strategic partner, Dilip Buildcon, and its strong execution capabilities across infrastructure sectors. We continue to deepen our investment in highquality, long-term infrastructure assets and see strong growth potential in India’s power and renewable energy sectors. We are committed to supporting India’s infrastructure development while creating sustainable, long-term value for our investors.”

DBL's asset monetisation partnership with Alpha Alternatives spans three infrastructure categories, roads and highways, renewable energy and power transmission. The roads portfolio has been transferred through Anantam Highways InvIT, while DBL's under-construction solar portfolio and Mekhali Power Transmission project are being monetised through Alpha Alternatives' infrastructure investment platform.          

DBL shares opened at an intraday high of ₹439.70, up by about 12% with the previous closing at ₹393.

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