The Board of Directors of Kalpataru Power Transmission Ltd. (KPTL) and JMC Projects (India) Ltd. (JMC), at their respective meetings held on Saturday, approved the scheme of amalgamation providing for the merger of JMC with KPTL. JMC’s shareholders (other than KPTL) will be allotted one share of KPTL against every four shares held by them in JMC. The combined entity will have a diversified portfolio of engineering and heavy construction capabilities, thereby creating one of the largest EPC companies in India with an estimated order book visibility (including L1) in excess of ₹37,000 crore, the companies said. The merger will also 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 operational synergies and cross learnings, thereby improving competitiveness to increase scale and relevance both in India and international EPC markets, the companies said. The combined entity will have footprints in more than 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. Mofatraj Munot, Chairman, KPTL said, “Over the past decade, at both KPTL and JMC, we have relentlessly focused to develop best in class project execution capabilities, robust systems and processes, strong leadership teams, strengthened balance sheet, diversified business lines and extended our geographical reach.” “By bringing together these two companies through merger, we are creating a strong platform to accelerate future growth, improve our competitive position and bring significant operational efficiencies. I am confident that the proposed merger of JMC into KPTL will enhance value for shareholders of both the companies,” he said. Manish Mohnot, Managing Director & CEO, KPTL, said, “The combined businesses present a significant opportunity to increase scale and relevance both in India and international EPC market. KPTL has strong domestic and overseas presence with a strong balance sheet and financial flexibility, while in high-growth civil business verticals, JMC provides a strong platform which is highly complementary to KPTL’s strengths.” “KPTL will continue with its efforts to divest non-core investments in order to strengthen its balance sheet. We will drive a vision of being a $3 billion revenue organisation by 2025, with strong balance sheet and stable margins,” he said. Shailendra Kumar Tripathi, MD and CEO, JMC said, “Merger of JMC with KPTL is an important step in our growth journey. KPTL brings several unique advantages, and the merger will help in realization of combined benefits of the two companies.” The appointed date is 1 April, 2022 and the merger process is expected to be completed in Q4 of FY23.
