As a part deal the company will divest its stake in ten special purpose vehicles held through its wholly-owned subsidiary, DBL Renewable Private Ltd undertaking the Company’s under-construction solar portfolio. The total project cost of the solar portfolio is approximately Rs 6,263 crore, including estimated equity investment of about Rs 1,253 crore, the company said in a statement.
DBRL is engaged in the development, design and engineering of an approximately 1,363 MW (AC) grid-connected solar photovoltaic portfolio across 163 locations in Madhya Pradesh, through ten SPVs. The portfolio is being developed pursuant to power purchase agreements with Madhya Pradesh Power Management Company Ltd under the Feeder Level Solarization component of the PM-KUSUM Component C scheme with commercial operations targeted for September 2027.
DBRL and Alpha Alternatives will fund the equity portion of the project cost in the ratio of 51:49 during the construction period.
The divestment represents a value-unlocking opportunity 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, Dilip Buildcon said.
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, it said.
“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. Following the execution of definitive agreements for our Mekhali transmission project, this transaction further builds on our partnership with Alpha Alternatives and 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,” Devendra Jain, Managing Director & CEO, Dilip Buildcon, said.
JM Financial Limited acted as the exclusive financial advisor to Dilip Buildcon for the transaction, while Khaitan & Co. acted as the legal advisor. AZB & Partners acted as the legal advisor to Alpha Alternatives.