The combined entity (post-merger) will create one of the largest EPC companies in India with an estimated order book visibility (including L1) in excess of Rs 37,000 crore.

This entity will be present across all high growth sectors, with significant capital allocation across government spend in the years to come. This will be a single listed entity with a strong balance sheet, simplified capital structure and with sector leading credit profile.

The merger will also enhance KPTL's business portfolio and pre-qualifications by JMC's expertise in civil works business. At the same time, JMC will be able to leverage KPTL's expertise, global business access and financial flexibility, to pursue value-creating opportunities by expanding the current business and bid for large-size infrastructure projects. The merger will drive immense operational synergies and cross learnings, thereby improving competitiveness to increase scale and relevance both in India and international EPC markets.

The combined entity will have footprints in over 65 countries across 5 continents.

Post-merger, the combined entity will comprise of several high-growth businesses with leadership positions in T&D, B&F, water, railways, oil & gas pipeline and urban infra, which provides balanced earnings visibility and a resilient portfolio.

The combined entity will be able to drive a lot of operational synergies and scale effectiveness in areas like procurement, supply chain and technology. Additionally, synergies will be achieved from the increased scale of the new organization, the sharing of best practices and cost reductions.

Further, the combined entity can maintain a strong balance sheet and credit profile, which has the potential to optimise liquidity and reduce cost of financing, leading to better profitability.

The success and scale of the combined business ensures funding capacity and flexibility for simultaneous investment in core business, debt reduction and capital return to shareholders. Our ethos of adopting a prudent approach towards maintaining a strong balance sheet, profitability focus, growth and industry leading credit profile will continue to be a force to reckon with.

With the appointed date of 1 April 2022, the merger process is expected to be completed in Q4FY23.

Manish Mohnot, managing director & CEO, KPTL said, “The merger of KPTL and JMC is a significant milestone for all of us, as both the entities come together to drive the next phase of growth and value creation. The combined businesses present a significant opportunity to increase scale and relevance both in India and international EPC market.

KPTL has strong domestic and overseas presence with strong balance sheet and financial flexibility, while in high-growth civil business verticals, JMC provides a strong platform which is highly complementary to KPTL's strengths. KPTL and JMC will leverage each other's respective capabilities to create value for both our shareholders through a successful combination of our franchises.

KPTL will continue with its efforts to divest non-core investments in order to strengthen its balance sheet. We will drive a vision of being a $3 billion revenue organisation by 2025, with strong balance sheet and stable margins."

Shailendra Kumar Tripathi, MD and CEO, JMC expressed that the, "Merger of JMC with KPTL is an important step in our growth journey. KPTL brings several unique advantages and the merger will help in realization of combined benefits of the two companies. It will be an exciting journey for the group and has immense potential to create attractive value for our customers, employees and other stakeholders."

KPTL is one of the largest specialized EPC companies engaged in power transmission & distribution, oil & gas pipeline, railways and civil infrastructure business.

JMC, a subsidiary of KPTL, is one of the leading civil construction and infrastructure EPC Company in India having over three decades of experience.

Shares of KPTL were up 2.34% at Rs 398.45. Shares of JMC were down 0.97% at Rs 91.85.