NCLT approves merger of Kalpataru Power Transmission, JMC Projects

Kalpataru Power Transmission Ltd (KPTL) on Wednesday said the National Company Law Tribunal has approved the merger of JMC Projects (India) Ltd with the firm, making it one of the country's largest listed engineering and construction companies.

The combined entity will have a significant presence in India and projects in 67 countries, with offerings in well diversified areas of power transmission and distribution, buildings and factories, water, railways, oil and gas and heavy civil infrastructure.

"Ahmedabad Bench of National Company Law Tribunal today approved scheme of amalgamation of JMC Projects (India) Ltd (JMC) with KPTL, leading to the creation of one of India's large listed diversified engineering and construction company with combined order visibility of nearly Rs 43,000 crores," a company statement said.

The Board of Directors of KPTL and JMC approved the scheme of amalgamation in February 2022. Pursuant to the scheme, JMC's shareholders (other than KPTL) will be allotted one share of KPTL for every four shares held by them in JMC.

KPTL Chairman Mofatraj Munot said, "The merger of JMC with KPTL is a strategic culmination and the start of a new era for both companies. The merger provides us with greater scale, diversified business mix, increase competitiveness, strong financial profile and wider geographic coverage." The merger also opens up immense opportunities for both KPTL and JMC, which are backed by a strong track record of execution capabilities, experienced management and well-established processes, he added.

Manish Mohnot, the MD and CEO of KPTL, said, "The timing of the merger is apt as we are witnessing a strong capex cycle in India and the ongoing global energy transition. The merger will strengthen the combined entity's presence across all growth sectors with size, scale and productivity benefits." Shailendra Kumar Tripathi, MD and CEO, JMC, said, "All of our businesses are poised for strong growth as we move towards our vision of being a USD 3 billion revenue organisation by 2025."