JMC Projects to merge into parent company KPTL

JMC Projects will likely be merged into its parent company Kalpataru Power Transmission Limited (KPTL), to profit from synergies, create a stronger balance sheet and to allow the combinedentity to bid for larger projects.

KPTL holds about 68 per cent stake in JMC Projects. The other shareholders of JMC Projects will likely be given one share of KPTL for every4 shares they maintain. The merger will allow the mixed entity to bid for larger engineering, procurement and construction (EPC) projects. The combinedentity has an orderbook of Rs 370 billion and the company targets reaching Rs 224 billion in annual revenues by 2025. The firm also estimates cost savings of about Rs 1 billion in the short term and a 50-100 basis point improvement in margins over the medium to long term.