Kalpataru 'Power's up

Kalpataru Power Transmission has had a tumultuous day today. It opened with a gain of over 3.2% at Rs.549, going up to Rs.551.40, which is just whiskers away from its 52-week high of Rs.553.50. Volumes jumped up over almost 4 times.

The company announced today morning that it has entered into a binding agreement with CPL India to sell stake in 3 power transmission assets – Kalpataru  Satpura  Transco  Private  Limited  (KSTPL),  AlipurduarTransmission  Limited  (ATL) and Kohima  Mariani  Transmission  Limited  (KMTL), referred jointly as SPVs, for an estimated enterprise value of Rs.3275 crore.

As a part of this deal, the transaction for ATL and KMTL will be effective post Commercial Operation date (COD)  and  fulfilment  of  certain  conditions.  Techno  Electric  &  Engineering  Company  Limited  (Techno) owns 26% stake in KMTL. The estimated amount of debt at the SPVs levels would be approximately Rs. 2,000 crore at the time  of COD.