Kalpataru Projects International Limited (KPIL) has announced that its Executive Committee, under the authority delegated by the Board, has approved the conversion of an outstanding loan into equity shares for its wholly owned subsidiary, Kalpataru Power Do Brasil Participações S.A. (KPBPSA). The decision was made during a meeting held on September 4, 2024.
KPBPSA, a holding company incorporated in Brazil, manages a subsidiary, Fasttel Engenharia S.A., and operates within the energy and infrastructure sector. The conversion of the loan into equity shares aims to bolster the financial position of KPBPSA, allowing it to secure larger projects and access local financing more effectively. Despite the conversion, KPIL will retain its full ownership of KPBPSA.
As per the regulatory filing, the conversion will take place in Q2 FY 2024-25, with the equity shares priced at BRL 2.10 per share. The transaction, classified as a related party transaction, is conducted on an arm’s length basis, with no change in the ownership percentage of KPIL in KPBPSA.
KPBPSA reported a consolidated turnover of approximately BRL 415 million (around USD 83 million) for the fiscal year ending March 31, 2024, but also recorded a loss of BRL 33 million (around USD 7 million). The company has a consolidated order book valued at BRL 779 million (approximately USD 155 million) as of June 30, 2024.