Dilip Buildcon has executed definitive agreements to divest its 51% equity stake in Mekhali Power Transmission Limited (MPTL) to Alpha Alternatives Fund Advisors LLP and its affiliates. The transaction was finalized on September 8, 2026.

The deal values the buyout at an enterprise value of approximately ₹2,914 crore, subject to pre-agreed closing adjustments and conditions precedent. MPTL is the special purpose vehicle undertaking the company's under-construction power transmission project in Karnataka.

Transaction Structure

Dilip Buildcon and Alpha Alternatives will fund the equity portion of the project cost in a 51:49 ratio. The total estimated project cost is ₹2,171 crore, with a total estimated equity investment of ₹429 crore.

Alpha Alternatives has agreed to fully acquire Dilip Buildcon's 51.0% equity stake after the project is commissioned. Commercial operations for the transmission asset are targeted around mid-2028.

Strategic Rationale

The divestment aligns with Dilip Buildcon's "DBL 2.0" strategy, which focuses on building an asset-light, multi-asset development platform. The company stated that the transaction enables capital recycling and balance sheet deleveraging.

Mr. Devendra Jain, Managing Director & CEO of Dilip Buildcon, said the partnership allows the company to recycle capital early in the asset lifecycle while maintaining a disciplined focus on strengthening its balance sheet.

Project Details

Mekhali Power Transmission Limited is developing a 400-kilovolt sub-station power transmission project extending to approximately 470 circuit kilometres in Belagavi District, Karnataka. The project is being developed pursuant to a Transmission Service Agreement dated May 30, 2026, with Karnataka Power Transmission Corporation Limited (KPTCL).

The asset is structured on a build-own-operate-transfer (BOOT) basis under the tariff-based competitive bidding route. KPTCL will serve as the offtaker for the asset over its operating life.

What the Numbers Show

The significant difference between the total project cost of ₹2,171 crore and the post-commissioning enterprise value of ₹2,914 crore suggests that the valuation includes not just the capital expenditure but also the future cash flow rights associated with the long-duration contracted asset. This structure allows Dilip Buildcon to exit the equity risk while potentially retaining operational involvement or realizing value from the contracted revenue stream before the final buyout.

Advisors

JM Financial Limited acted as the exclusive financial advisor, and Khaitan & Co acted as the legal advisor to Dilip Buildcon. AZB & Partners acted as the legal advisor to Alpha Alternatives.

The transaction is subject to the fulfilment of terms and conditions set out in the definitive agreements and receipt of requisite regulatory approvals.

Dilip Buildcon has received a Letter of Intent worth ₹1,800 crore for the Paradip-Raipur LPG pipeline project.

Project details

The order marks a significant addition to Dilip Buildcon's project portfolio in the energy infrastructure segment. The Letter of Intent covers the Paradip-Raipur LPG pipeline, a long-distance pipeline connecting Paradip and Raipur.

Order significance

The ₹1,800 crore LOI reflects Dilip Buildcon's continued presence in large-scale energy and infrastructure projects. The Paradip-Raipur LPG pipeline project represents a cross-regional energy transmission undertaking, reinforcing the company's order book in the pipeline construction segment.