- Dilip Buildcon signed agreements to sell stakes in 10 solar project SPVs in Madhya Pradesh
- The portfolio includes 1,363 MW of solar projects with an estimated cost of Rs 6,263 crore
- Equity funding during construction will be shared 51:49 between DBRL and Alpha Alternatives
Dilip Buildcon Ltd. has signed binding agreements with Alpha Alternatives to sell its interest in 10 special-purpose vehicles (SPVs) developing a portfolio of solar projects under construction in Madhya Pradesh, the infrastructure company said in a stock exchange filing on Monday.
The portfolio carries an estimated project cost of Rs 6,263 crore and has been assigned an enterprise value of about Rs 6,829 crore, subject to closing adjustments and the fulfilment of agreed conditions, the company said.
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The portfolio, held through DBL Renewable Pvt Ltd (DBRL), comprises about 1,363 MW (AC) of grid-connected solar photovoltaic projects spread across 163 locations in Madhya Pradesh.
Under the transaction structure, DBRL and Alpha Alternatives will fund the equity component of the project cost in a 51:49 ratio during the construction period.
The equity requirement is estimated at around Rs 1,253 crore and will be invested in the SPVs through various instruments and multiple tranches.
Upon completion of the portfolio, Alpha Alternatives-led funds or an infrastructure investment trust (InvIT) will acquire DBL's remaining 51% stake, according to the filing.
The projects are being developed under the Feeder Level Solarisation component of the PM-KUSUM Component C scheme, with power to be supplied under long-term power purchase agreements with Madhya Pradesh Power Management Company Ltd.
Commercial operations across the portfolio are targeted to commence around September 2027.
Dilip Buildcon said the transaction is part of its asset-light "DBL 2.0" strategy and will enable the company to recycle capital, reduce leverage and strengthen its balance sheet.
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"This transaction marks another important milestone in our DBL 2.0 journey as we continue to build a multi-asset infrastructure platform anchored by long-duration, contracted assets," Managing Director and CEO Devendra Jain said.
The transaction remains subject to fulfilment of conditions under the definitive agreements and receipt of requisite regulatory approvals.
JM Financial acted as the exclusive financial advisor to DBL, while Khaitan & Co was its legal advisor.
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