KEC International divests from Bikaner power transmission unit

KEC International signed a share purchase agreement with Adani Transmission on November 3, 2018 for sale of its entire stake in KEC Bikaner Sikar Transmission (KBSTPL) at an enterprise value of around Rs. 227.50 crore. KBSTPL is having an operational transmission line of 344 ckt km in the state of Rajasthan, from Bikaner to Sikar.

This transaction is in-line with KEC’s strategy to become an asset-light company and focus more on providing turnkey services to infrastructure sector.

KEC Bikaner Sikar Transmission Private Ltd. holds a minimum 25 years concession license to operate and maintain a 400 kV D/C Bikaner- Sikar Line of 344 ckt km in Rajasthan commissioned in December 2017.

Meanwhile, the stock of KEC International which opened at Rs. 306 per share dipped on Monday’s trading session to intraday low of Rs. 291 apiece, down by almost 5 per cent. At 12:40 hours, the stock was trading at Rs. 295.9 apiece, down by almost 3.2 per cent from its previous close.

Adani Transmission is a power transmission company involved in the transmission of electric energy and trading of castor oil.

KEC International is part of RPG Group having interest in infrastructure Engineering, Procurement and Construction (EPC). It has a presence in the verticals of Power Transmission and Distribution, Railways, Civil, Solar, Cables and Smart Infrastructure.