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The NCLT Ahmedabad has approved the merger of JMC Projects (India) Ltd. with Kalpataru Power Transmission Ltd. (KPTL), leading to the creation of a diversified engineering and construction company with combined order visibility of nearly Rs 43,000 crore, according to an exchange filing.

The board of directors of Kalpataru Power and JMC in February 2022 had approved the merger of the two companies. JMC shareholders will be allotted one share of Kalpataru Power for every four shares held by them in the company under the scheme.

Kalpataru Power stated that the combined entity will have a significant presence in India and projects in 67 countries.

The new entity will serve areas of power transmission and distribution, buildings and factories, water, railways, oil and gas, and heavy civil infrastructure. The combined entity will bring together diverse capabilities and the ability to pursue accelerated growth.

Kalpataru Power Chairman Mofatraj Munot said the merger with JMC provides greater scale, diversified business mix, increased competitiveness, strong financial profile and wider geographic coverage.

JMC Projects (India) Ltd. said that with the Kalpataru Power's expertise and global reach, it is well-placed to participate in overseas EPC opportunities, improving its business mix and global presence.

The merged entity intends to achieve $3 billion in revenue by 2025.

Earlier this month, brokerage firm Emkay had raised its price target on Kalpataru Power to Rs 615 from Rs 565. Emkay said it expects promoter pledge to decline as no investments were expected in non-core assets and valuation gap with direct peers like KEC should become negligible.

The brokerage sees an improvement in earnings on the back of a strong order book and softening commodity prices. The consolidated entity is expected to grow in the 15-20 percent range during the current and upcoming financial year.

Shares of Kalpataru Power are trading 1.7 percent higher at Rs 536.10.

Also Read: Kalpataru Power and units' T&D business win orders worth nearly Rs 1,400 crore