Sadbhav Infrastructure Projects update on acquisition of NHAI road projects by IndInfravit

Sadbhav Infrastructure Projects (SIPL) announced that lndlnfravit Trust has completed the acquisition of six out of nine operational NHAI road projects (BRTPL, DPTL, HYTPL, SUTPL, NSEL and BHTPL) of the company for total equity value of Rs 1891 crore. Against this, Sadbhav Infrastructure Projects was issued 62,041,118 units amounting to Rs 724.3 crore on 14 February 2020 and the balance Rs 1166.7 crore s to be received in cash subsequently. Post allotment of units, the company will hold 10% in IndInfravit.

For two of the remaining 3 state projects (MBHPL and AJTL), regulatory approvals are in place. The transaction is likely to be closed before the end of this month. Total equity value of both the projects is Rs 473.6 crore.

For ARRIL, regulatory approvals have been applied for and will be closed when the change in ownership approval is received. The total equity value for the project is Rs 267.2 crore.

With the completion of transactions for all nine assets, the total equity value to be received by SIPL would be Rs 2631.9 crore of which Rs 724.3 crore is received as units and the balance INR 1907.7 crore would be received in cash subsequently.

This transaction helps in de-leveraging balance sheet of SIPL & SEL and provides liquidity for future growth including completion for nine HAM which are under construction. SEL and SIPL standalone net principal debt which stands at Rs 2372.4 crore as on 31 December 2019 is expected to reduce to Rs 400 crore.

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