Mumbai: Kalpataru Power Transmission Ltd on Wednesday said it has entered into binding agreement with CLP India Pvt. Ltd to sell its stake in three power transmission assets for an enterprise valuation of ₹3,275 crore.
The three assets in which Kalpataru is selling its stake include Kalpataru Satpura Transco Pvt. Ltd (KSTPL), Alipurduar Transmission Ltd (ATL) and Kohima Mariani Transmission Ltd (KMTL). The transaction is subject to requisite approvals and compliances, Kalpataru said in a statement
As part of the deal, the transaction for ATL and KMTL will be effective after commissioning of the projects and fulfilment of certain conditions.
Techno Electric & Engineering Company Limited owns a 26% stake in KMTL.
The estimated debt at these assets would be approximately ₹2,000 crore at the time of commissioning, Kalpataru said.
“The sale of transmission assets is a landmark event in Kalpataru’s growth journey. The sale of assets is a milestone and a testament to our ability to create, operate, and hive off the assets at the right moment. The sale of assets will lead to a significant reduction in Kalpataru’s consolidated debt and will help focus on strategic diversification within core business. Kalpataru will continue to focus on sustainable and profitable growth with commitment to improve return ratios," said Manish Mohnot, managing director and CEO at Kalpataru.
CLP India, one of the largest foreign investors in the Indian power sector, counts Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), as its investor. CLP's India portfolio includes renewable and conventional energy amounting to over 3,000 MW.
CLP India’s sixteen wind energy projects and three solar energy projects span across seven states. The company also owns a coal‐fired power plant in Haryana and a gas based combined cycle power plant in Gujarat.
“The Indian market is a primary growth market for CLP and CDPQ and the two companies share a vision to invest only in a low carbon, clean energy portfolio in India. Entering the transmission sector is a landmark for CLP India. The acquisition of the Kalpataru assets will enable us to expand our geographical reach across the country and reinforces our commitment to grow our investments," said Rajiv Mishra, Managing Director, CLP India.