Kalpataru Projects International Limited (KPIL), a leading engineering, procurement and construction (EPC) player in the power transmission and distribution (T&D) and civil infrastructure segments, has completed the sale of its entire equity stake in its wholly owned subsidiary, Vindhyachal Expressway Private Limited (VEPL), to sustainable infrastructure investor Actis.
The definitive agreements for the transaction were executed on October 9, 2024, valuing VEPL at an enterprise value of approximately ₹775 crore, subject to customary closing adjustments.
VEPL was set up as a special purpose vehicle to develop a four-lane road project covering 89.30 km, connecting Rewa city to Hanumana at the Madhya Pradesh–Uttar Pradesh border along National Highway-7. The project was awarded by the Madhya Pradesh Road Development Corporation (MPRDC) under a Design, Build, Finance, Operate and Transfer (DBFOT) – toll-based concession. The concession agreement was signed in January 2012, with toll operations commencing in February 2015.
Commenting on the transaction, Manish Mohnot, Managing Director and Chief Executive Officer of KPIL, said that the divestment marks a significant milestone for the company. He added that the sale of VEPL, following earlier divestments of transmission assets, reflects KPIL’s capability to develop, operate and monetise long-term infrastructure assets. According to Mohnot, the move aligns with KPIL’s strategy to unlock value by exiting non-core assets while continuing to invest in its core EPC businesses to drive growth and improve returns.
Equirus Capital Private Limited acted as the transaction advisor, while Khaitan & Co served as legal advisor to KPIL. Anangram Partners advised Actis on the legal aspects of the deal.
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