Dilip Buildcon Divests Stake in Power Transmission Project to Alpha Alternatives
Dilip Buildcon Limited (DBL) announced the execution of definitive agreements for the divestment of its stake in Mekhali Power Transmission Limited (MPTL) to Alpha Alternatives Fund Advisors LLP and/or its affiliates. This move is part of DBL's strategy to transition into an asset-light, multi-asset infrastructure platform.The transaction, completed on September 8, 2026, concerns the divestment of DBL's 51.0% equity stake in MPTL, which is developing a power transmission project with a total estimated project cost of approximately INR 2,171 Cr.
The project, located in Belagavi District, Karnataka, involves developing, designing, and engineering a 400 kilovolt sub-station and approximately 470 circuit kilometres of associated transmission lines. This infrastructure project is being developed on a build-own-operate-transfer (BOOT) basis under a Transmission Service Agreement dated May 30, 2026, with Karnataka Power Transmission Corporation Limited (KPTCL).
Transaction and Financial Details
DBL and Alpha Alternatives have partnered to fund the equity portion of the project cost, estimated at approximately INR 429 Cr, in a 51:49 ratio.Key financial details of the divestment are as follows:
| Detail | Figure |
|---|---|
| Total Project Cost | Approximately INR 2,171 Cr |
| Total Equity Investment | Approximately INR 429 Cr |
| DBL's Stake | 51.0% |
| Buyout Value of DBL's Stake | Approximately INR 2,914 Cr |
Alpha Alternatives agreed to fully acquire DBL's 51.0% equity stake after the project is commissioned. Commercial operations for the transmission project are targeted around mid-2028.
Strategic Significance and Partnership
The divestment is described as a value-unlocking opportunity for DBL and is aligned with the Company's DBL 2.0 strategy. This strategy aims to build a diversified multi-asset platform focused on generating recurring cash flows, enabling capital recycling, and strengthening the balance sheet.Speaking on the transaction, Devendra Jain, Managing Director & CEO of Dilip Buildcon Limited, stated that the deal marks an important milestone in the DBL 2.0 journey. He added that the partnership with Alpha Alternatives enables DBL to recycle capital early in the asset lifecycle while maintaining a disciplined focus on a more asset-light business.
Kaushal Biyani, Senior Partner and Head of Private Markets at Alpha Alternatives, commented that the execution reaffirms confidence in Dilip Buildcon's strong execution capabilities across infrastructure sectors.
The transaction was advised by JM Financial Limited, which served as the exclusive financial advisor to DBL. Khaitan & Co acted as the legal advisor to Dilip Buildcon, while AZB & Partners acted as the legal advisor to Alpha Alternatives.
DBL Stock Price Movement
Shares of Dilip Buildcon Limited are edging higher to ₹415.7 as of 11:51 AM, gaining 5.78% in live trading. The stock traded with a volume of 4.99 million shares, currently trading within an intraday range between ₹410.1 and ₹439.7.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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