Kalpataru Power Transmission (KPTL) will consolidate its listed subsidiary JMC Projects (India) through an all-share swap transaction to improve operational efficiency and scale.
According to the proposed conversion ratio, each JMC shareholder who holds four shares of the company will receive one share of KPTL. The merger is expected to be completed by March next year.
Currently, the promoter’s shareholding in KPTL is 51.58%. KPTL holds a 67.75% stake in Jiangling Group. After the merger, the promoters’ ownership interest in the combined company is 47.28%, and the rest is owned by the public.
The merger of KPTL and JMC through merger will create one of the largest EPC (Engineering, Procurement and Construction) companies in India with combined order book (including L1) of over Rs 37,000 (as of December 2021) and annual sales of over Rs. 14,000 (estimated FY 2022) and projects exist in 67 countries on five continents. and introduction
Mofatraj Munot, Chairman of KPTL, said: “By combining these two companies, we are creating a strong platform to accelerate future growth, improve our competitive position and achieve significant operational efficiencies.”
Shailendra Kumar Tripathi, MD, JMC, said the merger will help realize the combined benefits of both companies and create compelling value for customers, employees and stakeholders.
The merger will also enhance KPTL’s business portfolio and pre-qualification through JMC’s expertise in the civil engineering business, it added.
At the same time, JMC will be able to leverage KPTL’s expertise, global business access and financial flexibility to bid on major infrastructure projects.
When combined, the combined company will have leadership roles in transmission and distribution, buildings and plants, water, rail, oil and gas pipelines, and urban infrastructure.
Complete News Source : Construction Week