Dilip Buildcon has signed definitive agreements to sell its stake in an under-construction power transmission project to Alpha Alternatives. The company disclosed the development to stock exchanges on September 9.

Dilip Buildcon-Alpha Alternatives deal 

The project is being developed through Mekhali Power Transmission Limited, a special purpose vehicle set up for the purpose. The SPV is building a 400 kV/220 kV sub-station at Mekhali in Belagavi district, Karnataka, along with about 470 circuit kilometres of transmission lines. The total project cost is estimated at Rs 2,171 crore.

Under the arrangement, Dilip Buildcon and Alpha Alternatives will jointly fund the equity portion of the project. The ratio is 51:49, with Dilip Buildcon holding the larger share, the filing noted. The equity investment is pegged at around Rs 429 crore.

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Alpha Alternatives has agreed to buy out Dilip Buildcon’s 51% stake once the project is commissioned. The buyout is valued at an enterprise value of roughly Rs 2,914 crore. The figure is subject to closing adjustments and conditions that are yet to be met, the filing said.

The project is being built on a build-own-operate-transfer basis. It follows a transmission service agreement signed on May 30, 2026 with Karnataka Power Transmission Corporation Limited. KPTCL will be the offtaker for the asset once it starts operating. Commercial operations are targeted around mid-2028.

DBL 2.0 strategy and asset monetisation 

Dilip Buildcon has been describing this shift as part of what it calls its “DBL 2.0” strategy. The company says it is moving away from being a pure construction contractor. Instead, it wants to build a portfolio of long-term, contracted assets that generate steady cash flows.

JM Financial acted as the exclusive financial advisor to Dilip Buildcon on the deal. Khaitan & Co was the legal advisor to the company. AZB & Partners advised Alpha Alternatives on the legal side. The transaction still needs regulatory approvals and other conditions to be met before it can close.

Dilip Buildcon LPG pipeline project 

In a separate filing a day earlier, Dilip Buildcon told exchanges it had received a Letter of Intent from the Petroleum and Natural Gas Regulatory Board. The LOI is for building and operating an LPG pipeline from Paradip in Odisha to Raipur in Chhattisgarh. The authorisation covers a construction period of three years, followed by 25 years of operation, during which the company can collect tariff for transporting LPG.

The project will be executed through a separate SPV, wholly owned by Dilip Buildcon. The company said the engineering, procurement and construction work tied to the pipeline is valued at about Rs 1,800 crore, excluding GST, to be carried out over 36 months. The pipeline will serve as a common carrier, transporting LPG to bottling plants run by various oil marketing companies. The company clarified that it will not be involved in the trading or sale of LPG itself.

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About Dilip Buildcon

Dilip Buildcon was established in 1987 and is based in Bhopal. The company has more than three decades of experience executing large infrastructure projects across India. It operates in 20 states and one Union Territory, with a workforce of over 21,000 employees and a fleet of more than 10,000 equipment units. Its businesses span roads and highways, rail and metro, airports, mining, industrial corridors, irrigation, tunnels, urban development, renewable energy, power transmission, and petroleum and natural gas, among other verticals. The company is listed on both the BSE and the NSE.

Dilip Buildcon share price today 

Dilip Buildcon’s share price has been up 5.72% as of intraday on September 9. The company’s share price has been down 6.51%. Over the past year, Dilip Buildcon’s share price declined 15.37% in the last year.