Kalpataru Power (KPTL) on December 8, 2020 announced a new corporate office capex of Rs 377 crore, which included a Rs 207 crore land purchase from a group entity.
It’s pertinent to mention here that KPTL promoter group has significant interests in the real estate business.
However, there was a significant push back on this from the analyst and investor community and was seen as something that was neither required nor justified and involved a sizeable transaction with a related party.
Though KPTL tried to defend the decision, calling it independent and fairly valued, it finally cave in and via an announcement on December 10, 2020 put the proposal in abeyance – calling it a reconsideration based on feedback from the investors !