Dilip Buildcon Divests Mekhali Power Project For ₹2,914 Crore, Alpha Alternatives To Acquire 51% Equity
Dilip Buildcon announced the divestment of its stake in Mekhali Power Transmission Limited to Alpha Alternatives. The buyout is valued at approximately ₹2,914 crore and aligns with Dilip Buildcon's asset-light strategy.
Dilip Buildcon |
Mumbai: Dilip Buildcon on 9 September 2026 announced it had executed definitive agreements for the divestment of its stake in Mekhali Power Transmission Limited (MPTL) to Alpha Alternatives Fund Advisors LLP and/or its affiliates.
Project Valuation
The buyout of the under-construction power transmission project is valued at an enterprise value of approximately ₹2,914 crore. This is subject to pre-agreed closing adjustments and conditions precedent.
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Equity Funding
The total estimated project cost for the transmission project is approximately ₹2,171 crore, with an estimated equity investment of ₹429 crore. Dilip Buildcon and Alpha Alternatives will fund the equity portion in a ratio of 51:49.
Future Acquisition
Alpha Alternatives has agreed to fully acquire Dilip Buildcon’s 51.0% equity stake in MPTL after the project is commissioned. This is based on the guidelines of applicable agreements.
Strategic Rationale
Devendra Jain, Managing Director and CEO, Dilip Buildcon Limited, said the transaction is an important milestone in the company's DBL 2.0 journey. He added that the partnership enables capital recycling early in the asset lifecycle and supports a more asset-light business model.
Project Details
Mekhali Power Transmission Limited is developing a 400 kV/220 kV sub-station at Mekhali and approximately 470 circuit kilometres of associated transmission lines in Belagavi District, Karnataka. The project operates on a build-own-operate-transfer (BOOT) basis under a transmission service agreement dated 30 May 2026 with Karnataka Power Transmission Corporation Limited (KPTCL). Commercial operations are targeted around mid-2028.
Advisor Roles
JM Financial Limited acted as the exclusive financial advisor for Dilip Buildcon, with Khaitan & Co serving as its legal advisor. AZB & Partners advised Alpha Alternatives legally.
Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.
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