The consideration for the transaction will be determined through a phased subscription and closing mechanism, in accordance with the terms agreed between the parties, the company said in a press release.
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Dilip Buildcon will divest stakes in two special purpose vehicles which house the transmission and solar power projects. They are Mekhali Power Transmission Limited and DBL Renewable Private Limited. Mekhali Power Transmission is building a 400 kilovolt sub-station power transmission project extending across 470 circuit kilometers in Belagavi, Karnataka.
DBL Renewable is developing a 1,363 megawatt solar portfolio in Madhya Pradesh.
“Our partnership with Alpha Alternatives across these transmission and solar projects enables us to recycle capital early in the asset lifecycle, while maintaining our disciplined focus on strengthening our balance sheet and building a more asset-light business,” said Devendra Jain, MD and CEO, Dilip Buildcon.
“This transaction reaffirms our confidence in our strategic partner, Dilip Buildcon, and its strong execution capabilities across infrastructure sectors,” said Kaushal Biyani, senior partner and head, private markets, Alpha Alternatives.
JM Financial acted as the exclusive financial advisor to Dilip Buildcon for the transaction. Khaitan and Co. acted as legal counsels.