Shares of Kalpataru Power Transmission were under pressure for the second straight day on Thursday, where it slipped 7 percent to Rs 302 on the BSE in intra-day trade falling 15 per cent in two days. The company’s shares took a dip after it announced on Tuesday that its board approved capital expenditure (capex) worth Rs 377 crores for the construction of the corporate office of the company. Kalpataru Power Transmission is one of the largest specialized engineering, procurement, and construction (EPC) companies in India engaged in power transmission and distribution.
The company’s stocks however have recovered on Friday and were up 6.41% to 322.80 from the previous day close, till the time of filing the copy.
In its statement to the BSE, the company said, “The board of directors of the company has approved capital expenditure of approximately Rs 207 crore towards the purchase of land and will further incur approximately Rs 170 crore towards construction, municipal charges, taxes and for other approvals for development and construction of corporate office of about 1,79,000 square feet of leasable area near its existing office at Santacruz, Mumbai.”
The total cost per square feet would be in the range of approximately Rs 21,000, and it is expecting to complete the construction within a period of 24-30 months.
The company said the plan is aimed at meeting the long-term space requirement of the company to accommodate its growth plans and to consolidate businesses of the company and its subsidiaries' at a single location. The construction of a corporate office will help the company to reduce rental costs, bring better efficiency and synergy of working together at a single location, it said.
The company had appointed independent international real estate consultants, valuation agencies, and legal advisors to assist in the identification and evaluation of various options.
Last month, Adani Transmission (ATL) had acquired Alipurduar Transmission from Kalpataru Power Transmission for an enterprise value of Rs 1,300 crore.