Sadbhav Infra jumps after asset monetisation

Sadbhav Infrastructure Project rose 5.50% to Rs 74.75 at 10:52 IST on BSE after the company said it signed agreements to sell its entire equity shareholding in nine operational road projects to IndInfravit Trust for about Rs 6,610 crore.

The announcement was made after market hours yesterday, 1 July 2019.

Meanwhile, S&P BSE Sensex was down 119.18 points or 0.30% at 39,567.32.

On BSE, 10,000 shares were traded in Sadbhav Infrastructure Project counter, compared to a 2-week average of 1882 shares. The share price hit an intraday high of Rs 77 and an intraday low of Rs 74.75. It hit a 52-week high of Rs 132.80 on 30 July 2018 and a 52-week low of Rs 58.75 on 28 June 2019.

Sadbhav Infrastructure Project and IndInfravit Trust today, 2 July 2019, executed definitive agreements where IndInfravit has agreed to purchase the entire equity shareholding of SIPL in nine of its operational road projects. The transaction values 100% of roads portfolio at an enterprise value (EV) of Rs 6,610 crore approximately.

Upon completion of the transaction, SIPL will receive the consideration from IndInfravit in cash as well as allotment of units of IndInfravit. Post completion, SIPL will hold not exceeding 10% unit holding in IndInfravit. The roads portfolio comprises seven toll roads and two annuity roads, with total 2,619 lane kms in Gujarat, Karnataka, Maharashtra, Rajasthan and Telangana.

SIPL will continue to own three operational road project companies and 12 under-construction road projects under the hybrid annuity model. SIPL will continue to focus on its core expertise of development of new roads and utilise the sale proceeds from this transaction to recycle capital in to bidding for new road projects, inject equity in current under-construction projects and prepay debt.

On a consolidated basis, Sadbhav Infrastructure Project reported net loss of Rs 83.17 crore in Q4 March 2019 compared with net loss of Rs 82.26 crore in Q4 March 2018. Net sales rose 18.2% to Rs 895.44 crore in Q4 March 2019 over Q4 March 2018.

Sadbhav Infrastructure Project (SIPL) is engaged in development, operation and maintenance of road infrastructure assets.

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