KPIL to Acquire Remaining 35% Stake in KIOCL for SAR 10 Mn, Becoming Wholly Owned Subsidiary
Kalpataru Projects International Limited (KPIL) will acquire the remaining 35% stake in Kalpataru IBN Omairah Company Limited (KIOCL) for SAR 10 Million. This will make KIOCL a wholly-owned subsidiary. The acquisition is expected to be completed by 31st May 2026. KPIL aims to strengthen its presence in Saudi Arabia.
The acquisition is significant as it leads to full ownership of a subsidiary and strengthens market presence, but the value of the acquisition (SAR 10 Mn) is relatively small compared to the overall company size, hence medium impact.
The acquisition of the remaining stake in KIOCL will make it a wholly owned subsidiary, strengthening KPIL's market presence in Saudi Arabia, which is a positive development for the company.
Kalpataru Projects International Limited (KPIL) has entered into a Share Sale, Exit, and Release Agreement to acquire the remaining 35% equity stake in Kalpataru IBN Omairah Company Limited (KIOCL) from its joint venture partner, BIN Omairah Contracting Company Limited. This acquisition, finalized on 23rd February 2026 in the Kingdom of Saudi Arabia, will make KIOCL a wholly-owned subsidiary of KPIL.
The intimation of this agreement was received by KPIL on 24th February 2026 at approximately 03:30 a.m. IST. The target entity, KIOCL, is an EPC company engaged in Power Transmission, Distribution, and Substation works, with a similar line of business to KPIL. For the financial year ended 31st March 2025, KIOCL reported a turnover of approximately SAR 90.79 Million (approximately USD 24.21 Million) and a net worth of approximately SAR (53.94) Million (approximately USD (14.38) Million).
The acquisition is not considered a related party transaction as the shares are being acquired from an unrelated party. The primary objective of this acquisition is to increase KPIL's equity stake in KIOCL from the current 65% to 100%, thereby strengthening KPIL's presence in the Kingdom of Saudi Arabia market. The transaction involves a cash consideration of SAR 10 Million for the 35% equity stake, representing 175 equity shares.
Customary approvals from the Saudi Business Centre and other authorities in the Kingdom of Saudi Arabia are required for the share transfer. The completion of the acquisition is anticipated on or before 31st May 2026. KIOCL was incorporated on 1st June 2015 and is currently executing High Voltage Transmission line and Sub-Station projects in Saudi Arabia. Its turnover for FY24 was approximately SAR 268.25 Million (USD 71.53 Million) and for FY23 was approximately SAR 46.13 Million (USD 12.30 Million).
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Kalpataru Projects International Limited filed this with the NSE as a statutory disclosure, categorised under acquisition. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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