Dilip Buildcon Ltd (DBL) has executed definitive agreements with Alpha Alternatives for the divestment of its 51% stake in Mekhali Power Transmission Ltd, the special purpose vehicle developing a ₹2,171 crore power transmission project in Karnataka.
Under the transaction structure, DBL and Alpha Alternatives will fund the equity requirement of the project in a 51:49 ratio. The project has an estimated equity requirement of around ₹429 crore.
Alpha Alternatives has agreed to acquire DBL’s entire 51% stake after the project achieves commissioning. The proposed buyout is valued at an enterprise value of approximately ₹2,914 crore, subject to pre-agreed closing adjustments and conditions.
Mekhali Power Transmission is developing a 400 kV/220 kV substation at Mekhali in Belagavi district, along with around 470 circuit kilometres of associated transmission lines. The project is being implemented on a build-own-operate-transfer (BOOT) basis under the tariff-based competitive bidding route.
The project is being developed under a Transmission Service Agreement signed with Karnataka Power Transmission Corporation Ltd (KPTCL) on May 30, 2026, with commercial operations targeted around mid-2028.
The transaction forms part of DBL’s “DBL 2.0” strategy, under which the company is seeking to transition towards a more asset-light infrastructure platform focused on long-duration contracted assets and recurring cash flows. The proposed stake sale is expected to facilitate capital recycling and support the company’s balance-sheet deleveraging efforts.
“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,” said Devendra Jain, Managing Director and CEO, Dilip Buildcon. He added that the partnership with Alpha Alternatives would allow DBL to recycle capital early in the asset lifecycle while maintaining its focus on strengthening the balance sheet.
Kaushal Biyani, Senior Partner and Head, Private Markets, Alpha Alternatives, said the transaction reflected the firm’s confidence in DBL’s execution capabilities and its focus on long-term infrastructure assets.
The proposed divestment remains subject to fulfilment of conditions under the definitive agreements and receipt of requisite regulatory approvals.