HomeBusiness NewsCompanies NewsKalpataru Power announces merger with JMC Projects to form EPC giant

Kalpataru Power announces merger with JMC Projects to form EPC giant

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.

Profile image

By PTI February 19, 2022, 7:32:09 PM IST (Published)

Kalpataru Power announces merger with JMC Projects to form EPC giant
Kalpataru Power Transmission Ltd on Saturday announced a merger with JMC Projects (India) Ltd which will create one of the largest engineering, procurement and construction (EPC) companies in the country. With the appointed date of April 1, 2022, the merger process is expected to be completed in Q4 FY23, it added.


"The Board of Directors of Kalpataru Power Transmission Ltd (KPTL) and JMC Projects (India) Ltd. (JMC) in their respective meetings held onFebruary 19, 2022, have approved the scheme of amalgamation which inter alia provides for the merger of JMC with KPTL (Scheme)," a company statement said. The merger is subject to approvals from the Gujarat bench of the National Company Law Tribunal (NCLT), statutory authorities, stock exchanges, shareholders, creditors and such other authorities, as may be required, it added.

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. This merger brings together two leading organisations with unique sets of capabilities and complementary businesses in the current attractive EPC markets, it stated. The merger will accelerate growth and enhance value creation for all stakeholders. 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.

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 pursue value-creating opportunities by expanding the current business and bid for large-size infrastructure projects. The combined entity will have footprints in over 65 countries across 5 continents. It will comprise several high-growth businesses with leadership positions in transmission and distribution (T&D), water, railways, oil and gas pipeline and urban infrastructure.

KPTL Chairman Mofatraj Munot said, "I am confident that the proposed merger of JMC into KPTL will enhance value for shareholders of both the Companies." Manish Mohnot, Managing Director and CEO, KPTL, said, "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, "KPTL brings several unique advantages and the merger will help in realization of combined benefits of the two companies."
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!