The boards of directors of Kalpataru Power Transmission Ltd (KPTL) and JMC Projects (India) Ltd. (JMC) in their respective meetings held on February 19, 2022 have approved the merger of JMC with KPTL
This merger brings together two leading organizations with unique sets of capabilities and complementary businesses in the current attractive EPC markets. The merger will accelerate growth and enhance value creation for all stakeholders, a release from KPTL said.
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. The merger is expected to be completed by Q4 of FY23.
Combined order book
The combination of KPTL and JMC by way of merger will create one of the largest EPC companies in India, with order book (including L1, as of December 31, 2021) in excess of Rs.37,000 crore and project footprint spanning 65+ countries.
The Rs.37,000-crore order book position of the combined entity will be spread across different sectors – power T&D (24 per cent share), buildings & factors (30 per cent), railways (10 per cent), oil & gas (6 per cent) and water (30 per cent).
Around 65 per cent of this order book position represents domestic orders, while the remaining 35 per cent is from global orders spread over more than 65 countries.
The order inflows of the combined entity was Rs.16,359 crore in FY21, up from Rs.9,887 crore in FY20. In the first three quarters of FY22, the total order inflow stood at Rs.14,348 crore.
Mutual benefit
The merger will enhance KPTL’s business portfolio and pre-qualifications by JMC’s expertise in civil works business. 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 merger will drive immense operational synergies and cross learnings, thereby improving competitiveness to increase scale and relevance both in India and international EPC markets, the release said.
Global footprint
The combined entity will have footprints in over 65 countries across 5 continents. With JMC’s proven civil works business capabilities, KPTL’s strong global footprint with ability to deliver projects on a global scale will result in significant opportunities for growth in existing and new geographies. KPTL’s local presence in Sweden and Brazil will also help to diversify into non-T&D businesses in these geographies, the release added.
Featured photograph for representation only
