Transaction Overview

Dilip Buildcon Limited announced the divestment of its stake in two special purpose vehicles (SPVs) to Alpha Alternatives Fund Advisors LLP and/or its affiliates and/or funds managed by Alpha Alternatives. The transaction involves:

  • Mekhali Power Transmission Limited - developing a 400 kV sub-station power transmission project extending to approximately 470 circuit kilometers in Belagavi District, Karnataka
  • DBL Renewable Private Limited - developing a 1,363 MW (AC)/1,977 MWp (DC) solar portfolio comprising 10 SPVs with solar assets across Madhya Pradesh

Financial Details

  • Combined total project cost: Approximately ₹8,400 Crore
  • Consideration mechanism: Phased subscription and closing mechanism
  • Transaction status: Definitive agreements yet to be signed

Strategic Rationale

  • Advances DBL's asset-light "DBL 2.0" strategy
  • Enables capital recycling for reinvestment in new opportunities
  • Supports balance sheet deleveraging and strengthening
  • Deepens existing long-term partnership with Alpha Alternatives

Project Specifics

Mekhali Power Transmission Limited

  • 400 kV/220 KV sub-station at Mekhali with ~470 ckm transmission lines
  • Location: Belagavi District, Karnataka
  • Implementation: Build-own-operate-transfer (BOOT) basis under tariff-based competitive bidding (TBCB) route
  • Offtaker: Karnataka Power Transmission Corporation Limited (KPTCL)

DBL Renewable Private Limited

  • Capacity: 1,363 MW (AC)/1,977 MWp (DC) grid-connected solar photovoltaic portfolio
  • Locations: 163 locations in Madhya Pradesh through 10 special purpose vehicles
  • Scheme: Feeder Level Solarization component of PM-KUSUM Component C scheme
  • Offtaker: Madhya Pradesh Power Management Company Limited (MPPMCL) under long-term power purchase agreement

Management Commentary

Mr. Kaushal Biyani, Senior Partner and Head, Private Markets, Alpha Alternatives stated: "This transaction reaffirms our confidence in our strategic partner, Dilip Buildcon, and its strong execution capabilities across infrastructure sectors. We continue to deepen our investment in high-quality, long-term infrastructure assets and see strong growth potential in India's power and renewable energy sectors."

Mr. Devendra Jain, Managing Director & CEO, Dilip Buildcon Limited commented: "This transaction marks an important milestone in our DBL 2.0 journey as we build a multi-asset infrastructure platform anchored by long-duration, contracted assets. Our partnership with Alpha Alternatives enables us to recycle capital early in the asset lifecycle."

Conditions and Advisors

  • Transaction subject to execution of definitive agreements and receipt of requisite regulatory approvals
  • JM Financial Limited acted as exclusive financial advisor to Dilip Buildcon
  • Khaitan & Co acted as legal advisor to DBL

Company Background

Dilip Buildcon Limited is a diversified infrastructure company with over three decades of execution experience across large-scale infrastructure development projects in India. The company operates across 20 states and 1 Union Territory with 21,221 employees and over 10,394 equipment units. Through DBL 2.0, the company is transitioning from a pure-play EPC contractor to a diversified multi-asset infrastructure platform.

Counterparty Information

Alpha Alternatives is India's leading performance-led alternative investment platform, founded in 2013 and headquartered in Mumbai. The firm manages a multi-asset portfolio spanning liquid and illiquid alternative strategies, with focus on infrastructure and real assets. Alpha Alternatives sponsors Anantam Highways Trust (SEBI-registered InvIT) and manages Build India Infrastructure Fund (Category II SEBI-registered AIF).