Dilip Buildcon Limited (DBL) has executed definitive agreements to divest its stake in Mekhali Power Transmission Limited, a special purpose vehicle (SPV) undertaking the company’s under-construction power transmission project, to Alpha Alternatives Fund Advisors LLP and/or its affiliates and/or funds managed by Alpha Alternatives Fund Advisors LLP (Alpha Alternatives). The total project cost of the transmission project is approximately INR 2,171 Cr.
Mekhali Power Transmission Limited is developing, designing and engineering a 400-kilovolt sub-station power transmission project spanning approximately 470 circuit kilometres in Belagavi District, Karnataka.
The project is being developed under a Transmission Service Agreement dated May 30, 2026, with Karnataka Power Transmission Corporation Limited (KPTCL), on a build-own-operate-transfer (BOOT) basis. Commercial operations are targeted around mid-2028.
Under the transaction structure, DBL and Alpha Alternatives will fund the equity portion of the project cost in a 51:49 ratio. The transmission project has an estimated total project cost of approximately INR 2,171 Cr, with total estimated equity investment of approximately INR 429 Cr, to be funded by DBL and Alpha Alternatives in the agreed ratio.
Alpha Alternatives has also agreed to fully acquire DBL’s 51.0% equity stake after the project is commissioned, subject to the guidelines of the applicable agreements. The buyout is valued at an enterprise value of approximately INR 2,914 Cr, subject to pre-agreed closing adjustments and conditions precedent.
The divestment provides a value-unlocking opportunity for DBL and is aligned with the company’s strategy of developing an asset-light, multi-asset platform focused on generating recurring cash flows and enabling capital recycling for reinvestment in new opportunities. The transaction also supports DBL’s ongoing efforts to deleverage and strengthen its balance sheet, while further deepening its existing long-term partnership with Alpha Alternatives.
Commenting on the transaction, Mr. Kaushal Biyani, Senior Partner and Head, Private Markets, Alpha Alternatives, said, “This transaction execution reaffirms our confidence in our strategic partner, Dilip Buildcon, and its strong execution capabilities across infrastructure sectors. We continue to deepen our investment in highquality, long-term infrastructure assets and see strong growth potential in India’s power and renewable energy sectors. We are committed to supporting India’s infrastructure development while creating sustainable, long-term value for our investors.”
Mr. Devendra Jain, Managing Director & CEO, Dilip Buildcon Limited, 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.”
The transaction remains subject to the fulfilment of the terms and conditions specified in the definitive agreements and receipt of the requisite regulatory approvals.
JM Financial Limited acted as the exclusive financial advisor to Dilip Buildcon, while Khaitan & Co acted as its legal advisor. AZB & Partners acted as the legal advisor to Alpha Alternatives.
