Kalpataru’s Vindhyachal Expressway Sale Analyzed

Kalpataru Projects International (KPIL) recently sold its entire ownership of a company called Vindhyachal Expressway (VEPL) to a new investor named Actis. This sale happened on October 9th, 2024, and involved transferring all the shares for around 775 crore rupees. VEPL was created specifically to build and manage a new highway.

Key Points

• KPIL sold VEPL to Actis for 775 crore rupees.
• VEPL built a 89.3 km highway connecting Rewa and Hanumana.
• MPRDC gave VEPL the right to build and operate the road.
• The project started collecting tolls in February 2015.
• The deal completed on October 9th, 2024.
• This sale represents a strategic shift for KPIL’s portfolio.

About Vindhyachal Expressway (VEPL)

VEPL is a special company, called an SPV, set up to build a road. This road connects two important cities: Rewa and Hanumana. It’s part of a larger highway called National Highway 7 (NH-7) which runs through Madhya Pradesh and Uttar Pradesh.

The construction was managed under a plan called DBFOT – Toll, meaning KPIL built the road, financed it, and then collected tolls to pay for it. The Madhya Pradesh Road Development Corporation (MPRDC) gave VEPL permission to do this. The agreement started back in January 2012, and the road officially started taking tolls in February 2015.

The Deal Details

Actis, a company that invests in sustainable infrastructure, bought VEPL. They paid around 775 crore rupees for the entire company. This means Actis now owns VEPL and is responsible for managing and developing the highway.

The agreement was officially signed on October 9th, 2024, and includes some adjustments that will be made when everything is finalized. This sale allows KPIL to focus on other projects and potentially get a return on the investment made in VEPL.

Investing in infrastructure is a long-term strategy that delivers sustained value.