The shares of Kalpataru Power Transmission (KPTL) and JMC Projects (JMC) hit their respective 52-week highs on the National Stock Exchange (NSE) after fixing January 11, 2023, as the record date for their merger.
The shares of KPTL rose 6.01% on Monday’s early trades to reach a fresh 52-week high of ₹ 592.50 apiece, while JMC rallied 7.57% to reach a 52-week high of ₹ 147.15 apiece.
The National Company Law Tribunal (NCLT), in its order dated December 21, 2022, had sanctioned the scheme of amalgamation of JMC with KPTL and their respective shareholders.
The merger would lead to the creation of one of India’s largest listed diversified engineering and construction companies, with combined order visibility of nearly ₹ 43,000 crores. All the shareholders of JMC (other than KPTL) will be allotted one share for every four shares held by them in JMC. The companies said that the merger would accelerate growth and enhance value creation for all stakeholders.
“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,” said Manish Mohnot, the MD and CEO of KPTL.
“With KPTL’s expertise and global reach, we are well-placed to participate in overseas EPC opportunities, thereby improving our business mix and global presence. 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,” said Shailendra Kumar Tripathi, the MD and CEO of JMC.
Kalpataru Power Transmission Ltd is a global EPC player with diversified interests in power transmission and distribution, railways and biomass-based power generation and oil and gas pipelines. It is a mid-cap company with a market capitalisation of 8,323 crores.
JMC Projects (India) Ltd is a construction company under the Kalpataru Group. It is primarily engaged in EPC and BOOT projects. The company has constructed landmark highways, flyovers, townships, hospitals, industrial units, and power plants across the country. It is a small-cap company with a market capitalisation of ₹ 2,297 crores.
Written by Simran Bafna
