DBL to Sell Power, Solar Assets to Alpha Alternatives

Mumbai, Aug 11 (PTI) Infrastructure EPC company Dilip Buildcon Ltd (DBL) will divest its stake in two under-construction power transmission and solar projects to Alpha Alternatives Fund Advisors LLP in a cash and units deal, according to a company official.

Alpha Alternatives will also co-invest alongside DBL through the construction phase of both projects -- Mekhali Power Transmission and DBL Renewable -- taking on roughly 49 per cent of the equity requirement, lowering as much capital DBL's parent balance sheet needs to commit to build the assets in the first place, the company's Strategy Head, Rohan Suryavanshi, told analysts in a concall on Tuesday.

The company's board approved the move on August 10, in a transaction valued at a combined project cost of approximately Rs 8,400 crore, he said.


"The compensation will be paid partly in cash and partly in units. The detailed breakup will be disclosed upon completion of the transaction," said Suryavanshi.

The divestment represents a value-unlocking opportunity for DBL and is aligned with the company's strategy of building an asset-light, multi-asset development platform focused on generating recurring cash flows and enabling capital recycling for reinvestment in new opportunities.

The transaction also supports the company's continued efforts to deleverage and strengthen its balance sheet, while further deepening its existing long-term partnership with Alpha Alternatives.

DBL is also evaluating InvIT structures for its Water and Oil & Gas assets, as part of a broader plan to recycle capital across its infrastructure portfolio beyond roads and power, Rohan Suryavanshi added in its Q1 concall.