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Kalpataru Power Transmission (KPTL) will merge its listed subsidiary JMC Projects (India) with itself in an all-share swap deal to drive efficiency and scale of operations.
As per the proposed swap ratio, every shareholder of JMC holding four shares in the company would get one share in KPTL. The merger is expected to be completed by March next year.
Currently, promoter shareholding in KPTL is at 51.58 per cent. KPTL has 67.75 per cent stake in JMC Projects. Post-merger, promoter shareholding in the combined entity will be at 47.28 per cent, with the balance being with the public.
The combination of KPTL and JMC by way of merger will create one of the largest EPC (engineering, procurement and construction) companies in India, with orderbook (including L1) in excess of Rs 37,000 crore (as on December-end 2021), consolidated annual revenue of Rs 14,000 crore-plus (estimate for FY22) and project footprint spanning 67 countries across five continents, per KPTL’s statement. and presentation
Mofatraj Munot, chairman, KPTL, said: “By bringing together these two companies through merger, we are creating a strong platform to accelerate future growth, improve our competitive position and bring significant operational efficiencies.”
Shailendra Kumar Tripathi, MD, JMC, said the merger will help realisation of combined benefits of both the companies and create attractive value for customers, employees and stakeholders.
The merger will also enhance KPTL’s business portfolio and pre-qualifications by JMC’s expertise in civil works business., it added.
At the same time, JMC will be able to leverage KPTL’s expertise, global business access and financial flexibility, to bid for large-size infrastructure projects.
Post-merger, the combined entity will have leadership positions in transmission and distribution, building and factories, water, railways, oil and gas pipeline and urban infra.
Complete News Source : Construction Week
