Kalpataru Projects to acquire full stake in Saudi JV KIOCL

Kalpataru Projects International Limited has signed an agreement to acquire the remaining 35 % stake in its Saudi Arabian joint venture, Kalpataru IBN Omairah Company Limited (KIOCL), from its local partner. The transaction, executed on February 23, 2026, will result in KIOCL becoming a wholly owned subsidiary of the company.

The company entered into a Share Sale, Exit, and Release Agreement with Bin Omairah Contracting Company Limited to purchase 175 equity shares representing the outstanding 35 % stake in KIOCL. The deal consideration is Saudi Arabian Riyal (SAR) 10 million, equivalent to about United States Dollar (USD) 2.67 million, payable in cash through banking channels.

After completion, Kalpataru Projects’ holding in KIOCL will increase from 65 % to 100 %. The transaction is expected to close on or before May 31, 2026, subject to customary approvals from the Saudi Business Centre and other authorities in the Kingdom.

The acquisition is intended to strengthen the company’s presence in Saudi Arabia, where KIOCL undertakes power transmission, distribution, and substation projects. Incorporated on June 1, 2015, the subsidiary focuses on high-voltage transmission lines and substation work aligned with Kalpataru Projects’ core engineering, procurement, and construction (EPC) operations.

For the fiscal year ended March 31, 2025, KIOCL reported turnover of about SAR 90.79 million (USD 24.21 million) and a loss after tax of SAR 22.96 million (USD 6.12 million). Net worth as of the same date stood at negative SAR 53.94 million (negative USD 14.38 million).

The company stated that the acquisition does not qualify as a related party transaction because the shares are being acquired from an unrelated shareholder. It also confirmed that the promoter, promoter group, and group companies do not hold any interest in the target entity beyond Kalpataru Projects’ existing shareholding.

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