Kalpataru Projects Int'l sells Vindhyachal Expressway for Rs 775 cr

New Delhi, Jan 16 (PTI) Kalpataru Projects International on Friday said it has sold 100 per cent equity stake in its arm Vindhyachal Expressway to Actis for Rs 775 crore.

The definitive agreement(s) were executed on October 9, 2024, to transfer the entire stake in Vindhyachal Expressway Private Ltd (VEPL) to Actis at an agreed enterprise value of Rs 775 crore (subject to necessary closing adjustments), Kalpataru Projects International Ltd (KPIL) said in a statement.

According to the statement, one of the leading EPC players in the power transmission and distribution (T&D) and civil infrastructure sector, on Friday, announced that it has successfully completed the sale of its 100 per cent equity stake in its wholly-owned subsidiary Vindhyachal Expressway Private Limited (VEPL) to growth market sustainable infrastructure investor Actis.

VEPL is a special purpose vehicle (SPV) and was formed to undertake a four-laning road project spanning 89.30 KMs connecting the main city of Rewa and Hanumana on the border of the states of Madhya Pradesh and Uttar Pradesh on the national highway section (NH)-7.

The project is under concession from Madhya Pradesh Road Development Corporation (MPRDC) on design, build, finance, operate and transfer (DBFOT) – Toll basis.

The concession agreement between VEPL and MPRDC was executed in January 2012, and toll collections started in February 2015.

Manish Mohnot, MD & CEO, KPIL, said, "This is a landmark event for KPIL. The strategic divestment of our four transmission assets previously, and the current sale transaction of VEPL, demonstrates KPIL’s track record in developing, operating and successfully divesting long-term infrastructure developmental assets".

"These divestments are consistent with KPIL’s strategy to optimise value through the disposal of non-core assets, whilst continuing to invest in core EPC business to speed up growth and scale, as well as contributing to achieving our targeted returns ratio." Equirus Capital Private Limited was the transaction advisor, and Khaitan & Co was the legal advisor to KPIL for this deal. Anangram Partners was the legal advisor to Actis.

KPIL is one of the largest specialised EPC companies engaged in power transmission & distribution, buildings & factories, water supply & irrigation, railways, oil & gas pipelines, urban mobility (Flyovers & Metro Rail), highways and airports. PTI KKS BAL BAL