Now Reading: Dilip Buildcon sells power projects worth Rs 8,400 crore
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Dilip Buildcon sells power projects worth Rs 8,400 crore
Dilip Buildcon has sold its solar and transmission projects to Alpha Alternatives for Rs 8,400 crore, the company disclosed in a stock exchange filing. The deal involves stakes in two special purpose…
The Story in Brief
Dilip Buildcon has sold its solar and transmission projects to Alpha Alternatives for Rs 8,400 crore, the company disclosed in a stock exchange filing. The deal involves stakes in two special purpose vehicles: Mekhali Power Transmission, building a 400 kV substation in Karnataka, and DBL Renewable, developing a 1,363 MW solar portfolio in Madhya Pradesh.
The transaction will follow a phased subscription and closing mechanism. Dilip Buildcon's MD Devendra Jain said the divestment will help recycle capital and strengthen the balance sheet. JM Financial was the exclusive financial advisor, and Khaitan & Co the legal counsel.
The Indian Opinion
This deal is being framed as a strategic shift to an 'asset-light' model, but it also signals pressure on infrastructure firms to raise cash quickly. The exact amount Dilip Buildcon actually receives will matter more than the headline Rs 8,400 crore figure, since the phased mechanism leaves room for renegotiation. Watch for the final debt reduction disclosed in the next quarterly results to judge whether this truly strengthens the balance sheet.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
