CLP Group in ₹3,200-cr deal with Kalpataru Power, Techno Electric

Venkatesh Ganesh Mumbai | Updated on July 03, 2019 Published on July 03, 2019

Rajiv Mishra, MD, CLP India

Hong Kong-based venture will buy stakes in three power transmission assets

Hong Kong-based CLP Group’s India venture has signed a ₹3,200-crore deal with Kalpataru Power Transmission Ltd (KPTL) and Techno Electric & Engineering Co Ltd to acquire stakes in three power transmission assets.

KPTL will sell off its power assets, held through three special purpose vehicles. They include Kalpataru Satpura Transco Private Ltd, Alipurduar Transmission Ltd and Kohima Mariani Transmission Ltd. Techno Electric & Engineering Company Ltd owns a 26 per cent stake in the Kohima project.

KPTL is a diversified Mumbai-based firm that has interests ranging from real estate to power, civil infrastructure and logistics. Manish Mohnot, Managing Director & CEO, KPTL, said the sale of the assets would lead to a significant reduction in KPTL’s consolidated debt and help focus on strategic diversification within its core business. KPTL will continue to focus on sustainable and profitable growth with a commitment to improve return ratios.

KPTL’s overall net debt stood at ₹3,306 crore in 2019, an increase of ₹252 crore when compared to 2018. With this transaction, CLP India will also buy the debt held by these SPVs, which was estimated to be ₹2,000 crore.

For CLP India, which is backed by Canadian pension fund CDPQ, this marks an entry into the power transmission sector. CLP’s existing portfolio includes conventional and renewable energy totalling to 3,000 MW in India. “We have had the intent of entering this segment for some time now and transmission is one of the key focus areas for us,” said Naveen Munjal, Director – Business Development & Commercial (Conventional), CLP India.

Expanding reach

“The acquisition of KPTL’s assets will enable us to expand our geographical reach across the country and both CLP and CDPQ share a vision to invest in a low-carbon, clean energy portfolio in India,” said Rajiv Mishra, Managing Director, CLP India.

Markets, however, were not impressed by the deal. KPTL’s shares closed at ₹529.15, dipping 0.5 per cent from the previous day’s close.

Published on July 03, 2019
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