Dilip Buildcon Limited (DBL) has signed definitive agreements with alternative investment manager Alpha Alternatives for the divestment of its stake in a major under-construction solar power portfolio, as the company advances its asset-light strategy and balance sheet deleveraging plans.
The transaction, announced on September 21, 2026, involves 10 special purpose vehicles (SPVs) held through DBL’s wholly owned subsidiary, DBL Renewable Private Limited (DBRL). The portfolio has an estimated total project cost of approximately ₹6,263 crore and an enterprise value of around ₹6,829 crore, subject to customary closing adjustments and fulfilment of applicable conditions.
The projects comprise an approximately 1,363 MW AC grid-connected solar photovoltaic portfolio spread across 163 locations in Madhya Pradesh. The projects are being developed under the Feeder Level Solarization component of the central government’s PM-KUSUM Component C scheme.
The solar projects are expected to supply electricity to Madhya Pradesh Power Management Company Limited (MPPMCL) under long-term power purchase agreements. Commercial operations for the entire portfolio are targeted to begin around September 2027.
Under the transaction structure, DBRL and Alpha Alternatives will jointly fund the equity requirement during the construction phase. The required equity investment is estimated at ₹1,253 crore, with DBRL contributing 51% and Alpha Alternatives contributing 49%. The equity will be infused into the project SPVs through multiple instruments and across different tranches.
Following completion of construction, Alpha Alternatives, through its managed funds or an Infrastructure Investment Trust (InvIT), will acquire DBL’s remaining 51% stake in the portfolio. This structure is expected to allow DBL to recycle capital invested in the projects while retaining participation during the construction phase.
The transaction is part of DBL’s broader “DBL 2.0” strategy, under which the company is seeking to transition from a pure-play engineering, procurement and construction (EPC) contractor toward a diversified multi-asset development platform. According to the company, recycling capital earlier in the asset lifecycle will support debt reduction and enable the deployment of capital into new growth opportunities.
The agreement follows an earlier announcement dated August 10, 2026, and builds on DBL’s relationship with Alpha Alternatives, which has also included arrangements related to the Mekhali transmission project.
Completion of the transaction remains subject to regulatory approvals and other customary closing conditions. JM Financial Limited acted as the exclusive financial advisor to DBL, while Khaitan & Co advised DBL on legal matters and AZB & Partners advised Alpha Alternatives.
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