Dilip Buildcon Limited (DBL) has executed definitive agreements with Alpha Alternatives Fund Advisors LLP and its affiliates for the divestment of its stake in 10 special purpose vehicles (SPVs) undertaking its under-construction solar portfolio.
The portfolio, held through DBLโs wholly owned subsidiary DBL Renewable Private Limited (DBRL), has an estimated total project cost of approximately INR 6,263 crore. The transaction is valued at an enterprise value of approximately INR 6,829 crore, subject to pre-agreed closing adjustments and conditions precedent.
DBRL is developing, designing and engineering an approximately 1,363 MW (AC) grid-connected solar photovoltaic portfolio across 163 locations in Madhya Pradesh through the 10 SPVs. The portfolio is being developed under power purchase agreements with Madhya Pradesh Power Management Company Limited (MPPMCL), under the Feeder Level Solarisation component of the PM-KUSUM Component C scheme. Commercial operations are targeted to commence around September 2027.
The portfolio has an estimated equity requirement of approximately INR 1,253 crore. DBRL and Alpha Alternatives will fund the equity portion in a 51:49 ratio during the construction period, with investments to be made through various instruments across multiple tranches.
Upon completion of the portfolio, Alpha Alternatives-led funds/InvIT will acquire DBLโs remaining 51% stake.
Devendra Jain, Managing Director & CEO, Dilip Buildcon, said, โThis transaction marks another important milestone in our DBL 2.0 journey as we continue to build a multi-asset infrastructure platform anchored by long-duration, contracted assets. Following the execution of definitive agreements for our Mekhali transmission project, this transaction further builds on our partnership with Alpha Alternatives and enables us to recycle capital early in the asset lifecycle, while maintaining our disciplined focus on strengthening our balance sheet and building a more asset-light business.โ
The company said the transaction is aligned with its asset-light โDBL 2.0โ strategy and is expected to facilitate capital recycling and balance sheet deleveraging while supporting reinvestment in new opportunities.
The transaction remains subject to fulfilment of the terms and conditions under the definitive agreements and receipt of requisite regulatory approvals.
JM Financial Limited acted as the exclusive financial advisor to DBL, while Khaitan & Co acted as its legal advisor. AZB & Partners acted as the legal advisor to Alpha Alternatives.
