Dilip Buildcon Limited’s (DBL) board has approved the proposal to divest its stake in its special purpose vehicles (SPVs), Mekhali Power Transmission Limited and DBL Renewable Private Limited, to Alpha Alternatives Fund Advisors LLP and/or its affiliates or funds managed by it. The two SPVs are developing the company’s under-construction power transmission and solar projects, respectively. The combined project cost is estimated at Rs 84 billion.
Mekhali Power Transmission is developing a 400 kV substation and transmission project spanning approximately 470 ckt km in Belagavi district, Karnataka. Meanwhile, DBL Renewable is developing a 1,363 MW (AC)/1,977 MWp (DC) solar portfolio comprising 10 SPVs with solar assets across Madhya Pradesh. The transaction consideration will be determined through a phased subscription and closing mechanism. Definitive agreements are yet to be signed.