Kalpataru Transmission and Partner Complete Sale of Stake in JKTPL

Kalpataru Power Transmission Ltd (KPTL) has announced that the firm and its joint venture partner have completed 74 percent equity stake sale in Jhajjar KT Transco Pvt Ltd (JKTPL) to IndiGrid.

“We are pleased to inform you that the Parties have completed the sale of first closing sale shares, which represents about 74 percent of the total equity shares of the JKTPL after obtaining the requisite regulatory and other approvals and compliance with condition precedents,” according to a BSE filing.

KPTL has completed the sale of about 37.78 percent of equity shares (which includes 1.32 percent equity shares held by KVPL and acquired by the Company), the filing added.

Earlier in May this year, KPTL had announced that it would sell the joint venture at an enterprise value of Rs 310 crore. The KPTL held 49.72 percent, Klassik Vinyl Products LLP (KVPL) held 1.32 percent and Techno Electric & Engineering Company held a balance 48.96 percent equity in JKTPL.

The sale of balance shares held by KPTL and Techno is expected to be completed shortly.

In May this year, KPTL had announced the execution of share purchase agreement (SPA) to sell its entire stake in JKTPL to India Grid Trust (IndiGrid) for a total Enterprise Value (EV) of JKTPL at about Rs 310 crore, subject to certain adjustments on account of assets and liabilities at the time of closing of the transaction.

The JKTPL holds the first power transmission project secured by KPTL and TEECL on DBFOT (Design-Build-Finance-Operate-Transfer) basis. The project comprises of three 400 kV power transmission lines and two 400 kV and sub-stations in Haryana.

In July, we had reported that Adani Transmission Ltd (ATL) had signed definitive agreements with Kalpataru Power Transmission Ltd (KPTL) for acquiring Alipurduar Transmission Ltd in a manner consistent with Transmission Service Agreement and applicable consents. The Enterprise value for the project was ascribed as Rs 1,286 crore. It was stated that with this acquisition, the cumulative network of ATL will reach more than 15,400 ckt kms, out of which more than 12,200 ckt kms (including this asset) is operational and more than 3,200 ckt kms is under various stages of execution.