Dilip Buildcon Transfers 26% Stake in Viluppuram Highways to Alpha Alternatives

On July 15, 2024, Dilip Buildcon Limited announced the transfer of a 26% stake in its wholly-owned subsidiary, Viluppuram Highways Limited, to Alpha Alternatives Holdings Private Limited. This follows previous disclosures regarding their long-term partnership made on November 7, 2023, February 12, 2024, March 30, 2024, and April 1, 2024.

The company stated that the agreement for the sale was entered into on July 10, 2024, with the transaction was completed on July 12, 2024. The consideration for this sale amounts to ₹30.79 crore.

Alpha Alternatives Holdings Private Limited is the buyer in this transaction and is not associated with Dilip Buildcon’s promoter or promoter group. As such, this sale does not qualify as a related party transaction, ensuring that the deal is conducted at “arm’s length.”

Furthermore, the sale does not fall under the provisions of a Scheme of Arrangement. Dilip Buildcon Limited clarified that it does not exceed the limits prescribed by the Companies Act, 2013, which would necessitate compliance with Regulation 37A of the SEBI (LODR) Regulations, 2015. Therefore, this regulation is not applicable to the current transaction.

This strategic divestment reflects Dilip Buildcon’s continuous commitment to optimise its business operations and focus on core areas while fostering relationships with key partners like Alpha Alternatives. The move aims to bolster the company’s financial standing and ensure sustainable growth in the long term.

This transaction highlights Dilip Buildcon’s proactive approach to managing its subsidiary investments and partnerships in the competitive infrastructure sector. Transferring the stake to Alpha Alternatives allows the company to enhance operational efficiency and align with its strategic objectives. This sale underscores the importance of maintaining robust partnerships while navigating the complexities of the infrastructure industry.

About Dilip Buildcon Limited

Dilip Buildcon Limited is engaged in developing infrastructure facilities on an Engineering Procurement and Construction (EPC) basis. The company undertakes contracts from various government entities, other organisations, and special purpose vehicles that it promotes.

On July 15, 2024, the share price of Dilip Buildcon Ltd opened at ₹536.20, touching the day’s high at ₹525.00, as of 11:06 AM on the NSE.

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