The Board of Directors of Kalpataru Power Transmission Ltd. (KPTL) and JMC Projects (India) Ltd. (JMC) in their respective meetings held on 19th February 2022 have approved the scheme of amalgamation which inter alia provides for the merger of JMC with KPTL (Scheme). This merger brings together two leading organizations with unique sets of capabilities and complementary businesses in the current attractive EPC markets. The merger will accelerate growth and enhance value creation for all stakeholders.
Pursuant to the Scheme, JMC’s shareholders (other than KPTL) will be allotted one share of KPTL against every four shares held by them in JMC.
The combined entity (post-merger) will possess a sectorally diversified portfolio of engineering and heavy construction capabilities, thereby creating one of the largest EPC companies in India with an estimated order book visibility (including L1) in excess of Rs. 37,000 Crore. This entity will be present across all high growth sectors, with significant capital allocation across Government spend in the year(s) to come, according to the statement.
Post-merger, the combined entity will comprise of several high-growth businesses with leadership positions in T&D, B&F, Water, Railways, Oil & Gas Pipeline and Urban Infra, which provides balanced earnings visibility and a resilient portfolio.
Commenting on the merger, Mofatraj Munot, Chairman, KPTL said “Today, we have taken an important step in our efforts and vision to create a leading global EPC company. Over the past decade, at both KPTL and JMC, we have relentlessly focused to develop best in class project execution capabilities, robust systems and processes, strong leadership teams, strengthened balance sheet, diversified business lines and extended our geographical reach. 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. I am confident that the proposed merger of JMC into KPTL will enhance value for shareholders of both the Companies.”
Manish Mohnot, Managing Director & CEO, KPTL said, “The merger of KPTL and JMC is a significant milestone for all of us, as both the entities come together to drive the next phase of growth and value creation. The combined businesses present a significant opportunity to increase scale and relevance both in India and international EPC market. KPTL has strong domestic and overseas presence with strong balance sheet and financial flexibility, while in high-growth civil business verticals, JMC provides a strong platform which is highly complementary to KPTL’s strengths. KPTL and JMC will leverage each other’s respective capabilities to create value for both our shareholders through a successful combination of our franchises. KPTL will continue with its efforts to divest non-core investments in order to strengthen its balance sheet. We will drive a vision of being a USD 3 billion revenue organisation by 2025, with strong balance sheet and stable margins.”
Shailendra Kumar Tripathi, MD and CEO, JMC expressed that the, “Merger of JMC with KPTL is an important step in our growth journey. KPTL brings several unique advantages and the merger will help in realization of combined benefits of the two companies. It will be an exciting journey for the group and has immense potential to create attractive value for our customers, employees and other stakeholders.”
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