New Delhi, Aug. 11 -- Infrastructure developer Dilip Buildcon Ltd (DBL) will divest its stake in two under-construction projects, Mekhali Power Transmission and DBL Renewable, to alternative asset manager Alpha Alternatives Fund Advisors LLP, the company said in a note following its earnings call for the first quarter of FY27.
The transaction carries a combined project cost valuation of around Rs 8,400 crore ($880 million) and received board approval on August 10.
Under the agreement, DBL will receive compensation partly in cash and partly in units, with the precise breakup to be disclosed upon transaction closure. As part of the deal structure, Alpha Alternatives will co-invest alongside DBL during the construction phase, acquiring roughly 48-49% of the equity requirement.
The co-investment model significantly reduces the equity burden on DBL's parent balance sheet during construction, supporting the Bhopal-based firm's strategy to deleverage, recycle capital, and transition toward an asset-light model focussed on recurring cash flows.
Expanding capital recycling beyond roads
The company is actively pursuing an asset-monetisation strategy beyond traditional road assets. DBL is currently evaluating the creation of infrastructure investment trust (InvIT) structures for its water, and oil and gas portfolios as part of its broader capital recycling framework, according to a person aware of the company's plans. To be sure, although it has ventured into these areas, they're not core to its business.
The company's water segment features a meaningful long-duration hybrid annuity model (HAM) portfolio, whereas its oil and gas assets currently represent a much smaller footprint.
"The divestment represents a value-unlocking opportunity for DBL and is aligned with the company's strategy of building an asset-light, multi-asset development platform focussed on generating recurring cash flows and enabling capital recycling for reinvestment in new opportunities." said Rohan Suryavanshi, strategy head, Dilip Buildcon.
DBL 2.0, growing portfolio units
Since launching its "DBL 2.0" strategy to build a diversified, long-term infrastructure portfolio, the company has deployed approximately Rs 1,200 crore of equity across its various asset platforms.
As of June 30, 2026, DBL's cumulative holdings in InvIT units-alongside its associates and economic interests-stood at Rs 1,521 crore. This comprises Rs 1,314 crore worth of units at face value in Anantam Highways Trust, alongside another Rs 207 crore face value held in Shrem InvIT.
Looking ahead, DBL remains on track to transfer its remaining HAM assets in phases to Anantam Highways InvIT through March 2027. The upcoming tranche involves 11 assets, which are expected to require less than Rs 81 crore of incremental equity investment while generating InvIT units valued at upwards of Rs 1,750 crore.
Published by HT Digital Content Services with permission from VC Circle.