Kalpataru Power Transmission Limited (KPTL) today announced execution of Share Purchase Agreement (SPA) to sell its entire stake in Jhajjar KT Transco Private Limited (JKTPL)to India Grid Trust ("IndiGrid") for a total Enterprise Value (EV) of JKTPL at about Rs.310 Crores, subject to certain adjustments on account of assets and liabilities at the time of closing of the transaction. The transaction is also subject to requisite approvals and compliances.
JKTPL is a joint venture between KPTL and Techno Electric & Engineering Company Limited (TEECL) wherein KPTL is currently holding 49.72% equity. JKTPL holds the first power Transmission Project secured by KPTL and TEECL on DBFOT basis. The project comprises of three 400 kV power transmission lines and two 400 kV and Sub-stations in state of Haryana.
Ernst & Young (EY) and Khaitan & Co are advisors to KPTL and TEECL for this transaction.
Commenting on the asset sale, Mr. Manish Mohnot, Managing Director & CEO, KPTL said, "This transaction is a major milestone and example of an accretive capital allocation process that KPTL has employed over the past several years. We are also progressing well on sale of other T&D assets and expect to close the same in FY21. Divestment of T&D assets will strengthen our EPC business and will allow us to focus on growth opportunities and deliver value to our shareholders. KPTL remains committed to its target of being a debt free company by FY 2021 and build a robust EPC business."
Shares of KALPATARU POWER TRANSMISSION LTD. was last trading in BSE at Rs.204.5 as compared to the previous close of Rs. 207.65. The total number of shares traded during the day was 34918 in over 653 trades.
The stock hit an intraday high of Rs. 208 and intraday low of 201.5. The net turnover during the day was Rs. 7131914.