Dilip Buildcon Limited (DBL) has entered into definitive agreements to divest its stake in Mekhali Power Transmission Limited, a special purpose vehicle developing an under-construction power transmission project in Karnataka, to Alpha Alternatives Fund Advisors LLP and/or its affiliates or funds managed by the investment firm.
The transmission project, located in Belagavi district of Karnataka, involves the development, design and engineering of a 400-kilovolt substation and approximately 470 circuit kilometres of transmission infrastructure. The project has an estimated total cost of around ₹2,171 crore.
Mekhali Power Transmission Limited is developing the project under a Transmission Service Agreement signed with Karnataka Power Transmission Corporation Limited (KPTCL) on May 30, 2026. The project is being implemented under a build-own-operate-transfer (BOOT) model, with commercial operations targeted for around mid-2028.
Under the transaction structure, DBL and Alpha Alternatives will fund the equity requirement for the project in a 51:49 ratio. The estimated equity investment is approximately ₹429 crore. DBL will initially hold a 51% equity stake, while Alpha Alternatives will hold the remaining 49%.
As part of the definitive agreements, Alpha Alternatives has also agreed to acquire DBL’s remaining 51% equity stake after the transmission project is commissioned, subject to applicable agreements, conditions and closing adjustments. The post-commissioning buyout has been valued at an enterprise value of approximately ₹2,914 crore.
The transaction is part of DBL’s strategy to build an asset-light, multi-asset infrastructure platform focused on long-duration and contracted assets. The company expects the divestment to unlock value while allowing it to recycle capital into new infrastructure opportunities.
DBL said the transaction will also support its efforts to reduce debt and strengthen its balance sheet. The partnership with Alpha Alternatives builds on their existing relationship and provides DBL with an opportunity to participate in the project during its development phase while eventually monetising its stake after commissioning.
Kaushal Biyani, Senior Partner and Head of Private Markets at Alpha Alternatives, said the transaction reflects the investment firm’s confidence in DBL’s execution capabilities and its strategy of investing in high-quality, long-term infrastructure assets. He also highlighted the growth potential of India’s power and renewable energy sectors.
Devendra Jain, Managing Director and CEO of DBL, said the transaction marks an important milestone in the company’s “DBL 2.0” strategy. He added that the partnership will enable DBL to recycle capital early in the asset lifecycle while maintaining its focus on deleveraging and developing an asset-light infrastructure business.
The transaction remains subject to fulfilment of the conditions specified in the definitive agreements and receipt of the required regulatory approvals. JM Financial Limited acted as the exclusive financial advisor to DBL, while Khaitan & Co served as its legal advisor. AZB & Partners acted as legal advisor to Alpha Alternatives.
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