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Kalpataru Power Transmission (KPTL) has announced the merger of its subsidiary, JMC Projects (India) with itself on 19 Februrary 2022.
JMC Projects is a 68 percent subsidiary of KPTL. Post-merger, JMC Projects (standalone entity) will be fully subsumed into KPTL, and its subsidiaries will become the subsidiaries of KPTL. The merger is expected to be completed during the fourth quarter of FY23 subject to requisite approvals.
Shareholders of JMC Projects (India) will be issued one equity share of KPTL for their four shares (4:1 ratio) under the all-equity merger.
While, KPTL offers EPC solutions across several infrastructure segments such as power transmission, oil and gas, and railways, JMC Projects owns and operates road assets under the BOOT or build, own, operate and transfer model.
In the recent past, JMC Projects, suffered due to fall in toll collections because of COVID induced nation-wide lockdown.
The combined entity can also benefit from KPTL’s overseas presence in power transmission and distribution (T&D) projects and JPC Project’s expertise in civil construction to expand into non-T&D areas outside of India. |
