On Wednesday, Kalpataru Power Transmission Ltd (KPTL) said that the National Company Law Tribunal had approved the merger of JMC Projects (India) Ltd with KPTL, making it one of the largest listed engineering and construction companies in the country.

The merger will have a significant presence in India and projects in 67 countries, offering a diversified portfolio of transmission and distribution, buildings and factories, water, railways, oil and gas, and heavy civil infrastructure.

“Ahmedabad Bench of NCLT judge today approved the proposed merger of JMC Projects (India) Ltd (JMC) and KPTL, thereby creating one of India’s largest listed diversified engineering and construction companies with a total order visibility of close to 43,000 crores,” said a company statement.

The boards of KPTL and JMC approved the merger plan in February 2022. Under the scheme, shareholders of JMC (excluding KPTL) will be issued 1 KPTL share for every 4 JMC shares held.

Earlier this month, brokerage Emkay raised its target price on Kalpataru Power to Rs 615 from Rs 565. Emkay said promoter commitments are expected to decline as an investment in non-core assets is not likely, and the valuation gap with direct peers such as KEC should narrow to negligible.

The broker sees improved earnings, backed by strong order books and weak commodity prices. The combined entity is expected to grow 15-20% in the current and future financial years.

Kalpataru Power shares rose 1.7% to Rs 536.10.