Kalpataru Power Transmission rose 1.12% to Rs 221.30 after the company said it has successfully completed sale of its entire 100% stake in Kalpataru Satpura Transco (KSTPL) to CLP India (CLP).
On 3 July 2019, Kalpataru Power entered into binding agreements with CLP India to sell its stake in three power transmission assets namely, Kalpataru Satpura Transco, Alipurduar Transmission and Kohima Mariani Transmission for an estimated enterprise value of Rs 3,275 crore.The company in a regulatory filing today announced that it has successfully completed sale of its entire 100% stake in Kalpataru Satpura Transco (KSTPL) to CLP India. Consequently, KSTPL has ceased to be a subsidiary of the company with effect from 20 November 2019. The Company has received full consideration towards sale of its stake in KSTPL to CLP in November 2019.
The company said it was to transfer its entire 100% stake in ATL to CLP India, upon achieving commercial operations of both the elements of the transmission line, which was achieved in January 2020. The agreement however was recently terminated on account of non-fulfilment of certain conditions precedent as per the agreed terms. The company assured it is actively pursuing and evaluating opportunities to sell its stake in ATL to suitable investors.
The company also entered into another agreement dated 3 July 2019 to transfer its entire 74% stake in Kohima Mariani Transmission (KMTL) to CLP India upon achieving commercial operations of the transmission line. The construction work relating to the KMTL project is progressing well and commercial operations are likely to be achieved by July/August 2020. Post commercial operations of the KMTL project and satisfaction of conditions precedent including obtaining the requisite regulatory and other approvals, as stipulated under the agreement, the company will transfer its stake in KMTL to CLP.
Commenting on the asset sale, Manish Mohnot, Managing Director & CEO, KPTL said, We continue to make steady progress towards our commitment to sell our power transmission assets and non-core assets. We have successfully transferred the Satpura Transmission Asset to CLP India Private Limited in FY19-20. We are also actively pursuing and evaluating the opportunities to sell our Jhajjar Transmission Asset, while evaluation of new buyers for Alipurduar Transmission Asset has already started. We remain confident to complete the Kohima Transmission Asset as per the given timelines. The sale of assets will generate significant cash for KPTL and we remain confident of achieving our goal to be a debt free company by end of March 2021.
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On a consolidated basis, Kalpataru's net profit surged 16.5% to Rs 127 crore on a 15.1% rise in net sales to Rs 3162 crore in Q3 December 2019 as against Q3 December 2018.
KPTL is one of the largest specialized EPC companies in India engaged in power transmission & distribution.
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