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Kalpataru Projects International’s 96.12%-owned step-down subsidiary

ICICIdirect Research 10 Sep 2026 DISCLAIMER

News: Kalpataru Projects International’s 96.12%-owned step-down subsidiary, Linjemontage i Grästorp AB, plans to launch an IPO and list on Nasdaq Stockholm by end-September 2026, subject to market conditions and approvals. The offering will comprise existing shares held by Kalpataru Sweden and other shareholders, at a valuation of up to SEK 2,350mn (₹2,324 crore), with cornerstone investors committing SEK 290mn (₹287 crore). Linjemontage reported FY26 revenue of SEK 3,225mn (₹3,190 crore), contributing ~11.14% of KPIL’s consolidated revenue, while its net worth stood at SEK 334mn (₹330 crore) and order book at SEK 4,349mn (₹4,301 crore) as of June 30, 2026.

View: The proposed listing could unlock value for KPIL while providing cash inflow from the secondary stake sale, which could be utilised for deleveraging, funding ongoing capex or strengthening the balance sheet. At the same time, retaining strategic ownership would allow KPIL to participate in Linjemontage’s future growth. Linjemontage has scaled revenue at a 56.6% CAGR between FY24 and FY26, with adjusted EBITA margin improving to 7.6%, and operates in a Swedish grid market expected to grow at ~11% CAGR through 2030.

Impact: Positive

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