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 date set for April 1, 2022, the merger process is expected to be completed in the fourth quarter of FY23, he added.
“The Board of Directors of Kalpataru Power Transmission Ltd (KPTL) and JMC Projects (India) Ltd. (JMC), at their respective meetings held on February 19, 2022, approved the merger plan which provides, among other things, for the merger of JMC with KPTL (Scheme),” a company statement read. The merger is subject to the approval of the Gujarat bench of the National Company Law Tribunal (NCLT), statutory authorities, stock exchanges, shareholders, creditors and any other authorities as required, he added.
Under the plan, JMC shareholders (other than KPTL) will be allocated one KPTL share for every four shares they hold in JMC. This merger brings together two leading organizations with a unique set of complementary capabilities and businesses in today’s attractive EPC markets, he said. The merger will accelerate growth and enhance value creation for all stakeholders. The combined entity (post-merger) will possess a sector-diversified portfolio of engineering and heavy construction capabilities, creating one of the largest EPC companies in India with estimated backlog visibility (including L1) greater than Rs 37,000 crore.
The merger will also strengthen KPTL’s business portfolio and pre-qualifications through JMC’s expertise in civil works, he added. At the same time, JMC will be able to leverage KPTL’s expertise, global market access and financial flexibility to pursue opportunities to create value by expanding current business and bidding on large infrastructure projects. wingspan. The combined entity will have footprints in over 65 countries across 5 continents. It will include several high-growth companies with leading positions in transportation and distribution (T&D), water, railways, oil and gas pipelines, and urban infrastructure.
KPTL Chairman Mofatraj Munot said, “I am confident that the proposed merger of JMC into KPTL will enhance shareholder value for both companies. Manish Mohnot, Managing Director and CEO of KPTL, said, “KPTL will continue its efforts to divest non-core investments to strengthen its balance sheet. a strong balance sheet and stable margins.” Shailendra Kumar Tripathi, MD and CEO of JMC, “KPTL brings several unique advantages and the merger will help realize the combined advantages of both companies.”