Dilip Buildcon Ltd (DBL) has announced execution of definitive agreements for divestment of its stake in Mekhali Power Transmission Ltd, the SPV housing an intrastate transmission scheme in Karnataka, to Alpha Alternatives Fund Advisors LLP and/or its affiliates and/or funds managed by Alpha Alternatives Fund Advisors LLP (collectively referred to as “Alpha Alternatives”).
The agreement was reached on September 8, 2026.
Mekhali Power Transmission Ltd, currently a wholly-owned subsidiary of DBL, is engaged in developing, designing and engineering a 400kV substation in Belagavi district, Karnataka, along with approximately 470 ckm of associated transmission lines.
The project is being developed pursuant to a Transmission Service Agreement dated May 30, 2026 with Karnataka Power Transmission Corporation Ltd (KPTCL), on BOOT basis, with commercial operations targeted around mid-2028, a release by DBL said.
As per the agreement, DBL and Alpha Alternatives will fund the equity portion of around Rs.429 crore in the ratio of 51:49. The total project cost of transmission project is around Rs.2,171 crore.
Alpha Alternatives has also agreed to fully acquire DBL’s 51 per cent equity stake after the project is commissioned, based on the guidelines of applicable agreements. This buyout is valued at an enterprise value of approximately Rs.2,914 crore, subject to pre-agreed closing adjustments and conditions precedent.
The transaction is subject to the fulfilment of the terms and conditions set out in the definitive agreements, and receipt of requisite regulatory approvals.
Important milestone
Speaking on the development, Devendra Jain, Managing Director & CEO, Dilip Buildcon Ltd, said, “This transaction execution marks an important milestone in our DBL 2.0 journey as we build a multi-assets infrastructure platform anchored by long-duration, contracted assets. Our partnership with Alpha Alternatives across this transmission project 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.”
Unlocking value
The divestment represents a value-unlocking opportunity for DBL and is aligned with the company’s strategy of building an asset-light, multi-asset development platform focused on generating recurring cash flows and enabling capital recycling for reinvestment in new opportunities. The transaction also supports the company’s continued efforts to deleverage and strengthen its balance sheet, while further deepening its existing long-term partnership with Alpha Alternatives, the release added.
Also Read:
- Dilip Buildcon receives letter of intent for Mekhali intrastate-TBCB scheme in Karnataka (August 11, 2026)
- RECPDCL transfers two intrastate scheme SPVs to winning developers (June 1, 2026)
- Dilip Buildcon to sell stake in under-construction power transmission asset (August 11, 2026)
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