Key Highlights
- Dilip Buildcon executed definitive agreements to divest its stake in Mekhali Power Transmission Limited to Alpha Alternatives.
- The under-construction Karnataka power transmission project has an estimated total project cost of approximately ₹2,171 crore.
- The project involves a 400 kV sub-station and approximately 470 circuit kilometres of transmission infrastructure in Belagavi District, Karnataka.
- DBL and Alpha Alternatives will fund the project’s estimated ₹429 crore equity investment in a 51:49 ratio.
- Alpha Alternatives has agreed to acquire DBL’s 51% equity stake after project commissioning, subject to agreed conditions and approvals.
- The proposed buyout carries an enterprise value of approximately ₹2,914 crore, subject to closing adjustments.
- The divestment supports DBL’s asset-light strategy, capital recycling and balance-sheet deleveraging.
Dilip Buildcon Limited (DBL) has executed definitive agreements with Alpha Alternatives Fund Advisors LLP and/or funds managed by Alpha Alternatives for the divestment of its stake in Mekhali Power Transmission Limited (MPTL), a special purpose vehicle undertaking an under-construction power transmission project in Karnataka.
The transmission project has an estimated total project cost of approximately ₹2,171 crore. Under the transaction structure, DBL and Alpha Alternatives will fund the project’s equity requirement in a 51:49 ratio.
Mekhali Power Transmission Limited is developing, designing and engineering a 400-kilovolt sub-station power transmission project extending approximately 470 circuit kilometres in Belagavi District, Karnataka.
The project is being developed under a Transmission Service Agreement dated May 30, 2026, with Karnataka Power Transmission Corporation Limited (KPTCL), on a build-own-operate-transfer (BOOT) basis. Commercial operations are targeted for mid-2028.
Alpha Alternatives to Acquire DBL’s 51% Stake
As part of the transaction, Alpha Alternatives has agreed to fully acquire DBL’s 51% equity stake after the project is commissioned, subject to applicable approvals and other agreed conditions.
The buyout has been valued at an enterprise value of approximately ₹2,914 crore, subject to pre-agreed closing adjustments and conditions precedent.
The project has an estimated equity investment of approximately ₹429 crore, which will be funded by DBL and Alpha Alternatives in the agreed 51:49 proportion.
The transaction is aligned with DBL’s asset-light strategy, which focuses on developing infrastructure assets and subsequently recycling capital through strategic divestments.
The company said the divestment is expected to support capital recycling and balance-sheet deleveraging while allowing it to reinvest in new infrastructure opportunities.
Management Commentary
Kaushal Biyani, Senior Partner and Head of Private Markets at Alpha Alternatives, said the transaction reflects confidence in Dilip Buildcon as a strategic partner and its execution capabilities in the infrastructure sector. He also highlighted the long-term growth potential of India’s power and renewable energy sectors.
Devendra Jain, Managing Director and CEO of Dilip Buildcon Limited, said the transaction forms part of the company’s “DBL 2.0” strategy to build a multi-asset infrastructure platform backed by long-duration contracted assets.
According to Jain, the partnership enables DBL to recycle capital across the transmission project’s asset lifecycle while maintaining its focus on strengthening the balance sheet and developing a more asset-light business model.
The transaction remains subject to fulfilment of the terms and conditions specified in the definitive agreements and receipt of the requisite regulatory approvals.
JM Financial Limited acted as the exclusive financial advisor to Dilip Buildcon, while Khaitan & Co served as its legal advisor. AZB & Partners acted as the legal advisor to Alpha Alternatives.