Kalpataru Power Transmission Limited (KPTL) has signed definitive agreements with Adani Transmission Limited to sell its wholly-owned subsidiary named Alipurduar Transmission Limited (ATL) for a total enterprise value (EV) of about Rs 1,286 crore.
Alipurduar Transmission Limited was set up as a part of an inter-state transmission system for strengthening and transferring of power from new hydroelectric power projects in Bhutan to India. It won this project on ‘build own operate and maintain’ (BOOM) basis through a competitive bidding process from REC Transmission Projects Company Limited (RECTPCL) for a period of 35 years. The project involved designing, financing, construction, commissioning, operation and maintenance of 325 kms of 400 KV transmission line.
In FY20, ATL generated revenue of Rs 90.36 crore, which was 0.7 per cent of KPTL’s consolidated revenue. Its net worth stood at Rs 170.20 crore, which is 5.07 per cent of KPTL’s total consolidated net worth.
The company’s management informed that in FY20, KPTL had already completed the sale and transfer of Satpura Transmission asset. It has agreements for the sale and transfer of all of its T&D assets that include ATL, Kohima and Jhajjar transmission assets. It plans to carry out this sale procedure in FY21. It further stated that the sale of T&D assets would accelerate KPTL’s growth strategy in the global EPC market and enhance shareholder value.
Adani Transmission, which is part of Adani Group, is India’s largest private transmission company with a cumulative transmission network of more than 15,400 circuit kilometers, out of which, more than 12,200 ckt kms is operational.
On Monday, the stock of KPTL opened at Rs 240 on BSE. In the early morning session, it surged 4.1 per cent to Rs 243.85 from its previous close of Rs 234.15.