Welspun To Sell Six Road Project To Actis HIghway Infra For Rs 6,000 Crore

Infrastructure firm Welspun Enterprises on Thursday said it has executed definitive agreements with Actis Highway Infra to sell its portfolio of operating highway projects for an aggregate enterprise value (EV) of approximately Rs 6,000 crore..Post this proposed exit, Welspun Enterprises in a BSE filing said, the company's road asset portfolio would comprise two under-construction Hybrid Annuity Model (HAM) road projects (Sattanathapuram-Nagapattinam and Aunta–Simaria road projects), which have a total project cost of Rs 3,900 crore..The company said its highway portfolio comprises five completed HAM assets (Welspun Delhi Meerut Expressway Private Limited, Welspun Road Infra Private Limited, MBL (CGRG) Road Limited, MBL (GSY) Road Limited, Chikhali Tarsod Highways Private Limited) and one operating BOT-Toll asset (Welspun Infrafacility Private Limited)..Welspun Group Chairman BK Goenka said, "This is a landmark moment for the company...Similarly, we will explore exiting the balance under-construction road assets and oil and gas assets at the right time and the right value"..Under the HAM model, the government provides 40 per cent of the project cost to the developer to start work, while the remaining investment has to be made by the developer..The completion of the above transaction is subject to the completion of customary and regulatory compliances and approvals from the NHAI, PWD, and lenders, it added..Welspun Enterprises Ltd. (WEL), part of the Welspun Group, is an infrastructure development company focusing on road, water and wastewater segments, while Actis is a leading global investor in sustainable infrastructure.

Welspun To Sell Six Road Project To Actis HIghway Infra For Rs 6,000 Crore

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