Dilip Buildcon has signed definitive agreements to sell its 1,363 MW solar portfolio to Alpha Alternatives at an enterprise value of Rs 6,829 crore. This strategic move under the 'DBL 2.0' framework aims to deleverage the balance sheet and recycle capital from its under-construction projects, which are set to become operational by September 2027.
Dilip Buildcon Divests Solar Portfolio at Rs 6,829 Crore Valuation
Enterprise Value: Rs 6,829 crore | Portfolio Capacity: 1,363 MW
Reader Takeaway: DBL pivots to asset-light strategy, unlocking capital via early divestment of solar assets to Alpha Alternatives.
What just happened
Dilip Buildcon Limited (DBL) has entered into definitive agreements to divest its entire interest in ten special purpose vehicles (SPVs) holding its solar portfolio to Alpha Alternatives Fund Advisors LLP. The transaction is based on an enterprise valuation of Rs 6,829 crore, covering a 1,363 MW grid-connected solar portfolio located in Madhya Pradesh.
Why this matters
This deal is a cornerstone of the 'DBL 2.0' strategy, transitioning the company from a traditional EPC contractor to a diversified infrastructure platform. By offloading these assets early in the construction cycle, DBL is effectively recycling capital and reducing its debt load. The company and the buyer will share the equity funding requirement of Rs 1,253 crore in a 51:49 ratio.
The backstory
The company previously announced its intention to divest these assets on August 10, 2026. The projects are developed under the PM-KUSUM Component C scheme, ensuring long-term power purchase agreements (PPAs) with the Madhya Pradesh Power Management Company Limited.
What changes now
DBL will retain a 51% stake during the construction phase, with the remainder held by Alpha Alternatives. Upon project completion, which is targeted for September 2027, the buyer or an Infrastructure Investment Trust (InvIT) will acquire DBL’s remaining interest.
Risks to watch
The completion of the transaction remains subject to customary closing conditions and regulatory approvals. Any significant delays in project construction or changes in regulatory requirements for the PM-KUSUM scheme could impact the transaction timeline and final valuation.
What to track next
Watch for updates on the receipt of regulatory approvals and the milestone progress of the 163 solar project locations in Madhya Pradesh as they approach the September 2027 operational target.