MEP Toll Road to sell 10-15% stake to PE cos by Sept

Toll management company MEP Toll Road today said it has initiated discussions with a clutch of private equity firms to dilute its holding by 10-15% by September this year.

The divestment of stake to private equity players will be followed by listing of the company in domestic bourses towards the end of current fiscal, MEP Toll Road chairman and managing director Jayant Mahiskar told PTI.

"We are already in discussion with 2-3 overseas private equity players for diluting 10-15% in the company. But, we are yet to zoom in on any. However, a deal will be signed within the second quarter of current fiscal," Mahiskar said.

He, however, declined to give further details, saying, "We have signed a non-disclosure agreement and are bound by the agreement."

The company would use the proceeds primarily to retire the debt, which currently stands at Rs 2,400 crore.

MEP Toll Road along with its subsidiary company A J Tolls has a pan-India presence in eight states - Haryana, Karnataka, Uttar Pradesh, Gujarat, Orissa, Andhra Pradesh, Tamil Nadu and Maharashtra. Currently, it is managing toll collection from 226 lanes.

From the National Highway Authority of India (NHAI), the company had bagged 20 toll collection plazas early this year for one year.

Mahiskar said that NHAI is likely to invite bids for 27 toll collection plazas by the end of next month and MEPL would like to bid for all of them.

MEPL's core business also includes securitisation for financing BOT projects, operation and maintenance of highway projects, bridges and tunnel projects.

On the listing in the domestic bourses, Mahiskar said the company would initiate the process after fund raising through diluting stakes to private equity players.

"Raising funds through the PE route will give us a fair assessment of the valuation of the company. Listing can happen only after that sometime by the end of the current fiscal," he said.