Kalpataru Projects International has announced significant progress in its divestment strategy, with the company close to completing the sale of its entire stake in Vindhyachal Expressway Private Limited to Actis Atlantic Holdings.

Transaction Overview

The infrastructure development company has provided updates on the strategic sale, indicating that the deal is approaching completion. The transaction involves the complete divestment of Kalpataru Projects International's stake in Vindhyachal Expressway Private Limited.

Strategic Implications

This divestment represents part of Kalpataru Projects International's portfolio optimization strategy. The sale of the expressway project stake to Actis Atlantic Holdings demonstrates the company's focus on streamlining its asset base and potentially reallocating resources to core business areas.

About the Parties

Vindhyachal Expressway Private Limited represents one of the infrastructure assets in Kalpataru Projects International's portfolio. Actis Atlantic Holdings, the acquiring entity, is taking over the complete stake in this expressway project.

The completion of this transaction will mark the full exit of Kalpataru Projects International from the Vindhyachal Expressway project, allowing the company to focus on other strategic initiatives and core infrastructure development activities.

Kalpataru Projects International Limited (KPIL) has announced securing new orders and notification of awards worth approximately ₹719.00 crores. The leading EPC player in power transmission and distribution (T&D) and civil infrastructure sector achieved this milestone along with its joint venture partners, leading to positive market response with shares gaining 1%.

Stock Performance and Market Response

Shares of Kalpataru Projects International gained on Thursday following the order announcement, trading 1% higher at ₹1,213.00. Despite the recent positive momentum, the stock remains down 8% over the last 12 months, reflecting broader market challenges in the infrastructure sector.

Major Order Details

The significant order win includes an elevated metro rail project in Thane, Maharashtra, marking a strategic expansion in the company's urban infrastructure portfolio. The company secured these orders through its joint venture partnership, though the specific share allocation has not been disclosed.

Management Commentary

Manish Mohnot, MD & CEO of KPIL, expressed satisfaction with the new order acquisition, particularly highlighting its significance for the Urban Infrastructure business vertical. "The elevated metro rail order in Thane has strengthened our presence in the growing urban transportation EPC business, reinforcing our confidence in the growth potential of our Urban Infra business in India," Mohnot stated.

The management emphasized that their strong order intake, diversified order book, and robust execution capabilities position the company favorably to deliver on growth targets in the coming quarters.

Business Challenges and Strategic Focus

Despite the positive order wins, the company continues to navigate challenges in the water infrastructure segment. Projects linked to the Jal Jeevan Mission account for around 10% of the firm's total order book, with receivables above ₹1,000.00 crores due to payment delays.

Company director Amit Uplenchwar indicated that the firm's diverse business mix will help manage current challenges while maintaining focus on growth in the transmission and distribution (T&D) sector.

Company Profile and Strategic Positioning

KPIL operates as one of the largest specialized EPC companies with expertise across multiple sectors including Power Transmission & Distribution, Buildings & Factories, Water Supply & Irrigation, Railways, Oil & Gas Pipelines, Urban Mobility, Highways, and Airports. The company maintains an extensive global presence, currently executing projects in over 30 countries with a footprint spanning 75 countries worldwide.

The new order reinforces KPIL's leadership position in its major business segments, supported by strong organizational capabilities, superior technical expertise, and adherence to best-in-class sustainability standards.