KPTL announces divestment of stake in Kohima-Mariani Transmission Asset

Kalpataru Power Transmission Limited (KPTL) and Techno Electric & Engineering Company Limited (TEECL), a joint venture partner in KMTL, today successfully completed transfer of 49% stake (23% by KPTL and 26% by TEECL) in Kohima-Mariani Transmission Limited (KMTL) to Apraava Energy Private Limited (formerly known as CLP India Private Limited). The remaining stake in KMTL will be transferred by KPTL in accordance with the terms of the Transmission Service Agreement (TSA).

KMTL is a joint venture between KPTL and Techno Electric & Engineering Company Limited (TEECL) with KPTL holding 74% and TEECL holding 26% equity. KPTL and TEECL had entered into a binding agreement in July 2019 with Apraava Energy Private Limited to sell their respective stake in KMTL.

KMTL was set-up to implement a transmission system under North Eastern Region Strengthening Scheme (NERSS-VI) on BOOM basis. The Project was won under a competitive bidding process conducted by PFC Consulting Limited (PFCCL). The Project involved design, financing, construction, commissioning, operation and maintenance of 254 ckms of 400 KV transmission line, 400/220 kV GIS Substation of 16 bay, 7x167 MVA capacity with remote security and remote communication features. The transmission line passes through three states i.e. Manipur, Nagaland and Assam. The project achieved full commissioning in second half of 2020-21.

Ernst & Young (EY) and Khaitan & Co are advisors to KPTL for this transaction.

Commenting on the asset sale, Mr. Manish Mohnot, Managing Director & CEO, KPTL said, "The transfer of stake in KMTL announced today along with earlier divestment of our T&D assets is in line with our strategy to reduce debt and invest in our future growth plans, including expanding our international presence. With the continuing momentum in divestment of long-term assets and non-core businesses, KPTL remains focused on executing its strategy of pursuing growth in targeted core EPC businesses, optimising capital structure. The consideration from the sale of KMTL will help us reduce our standalone debt by around Rs.700 crores."

Shares of Kalpataru Power Transmission Limited was last trading in BSE at Rs. 349.05 as compared to the previous close of Rs. 358.95. The total number of shares traded during the day was 12673 in over 637 trades.

The stock hit an intraday high of Rs. 355.00 and intraday low of 341.80. The net turnover during the day was Rs. 4404257.00.

Source : Equity Bulls

Keywords

KalpataruPowerTransmission INE220B01022 JV StakeSale TSA ApraavaEnergy