Dilip Buildcon board approves plan to divest stake in subsidiaries

Highway developer Dilip Buildcon on Monday said its board has approved the proposal to divest equity stake in wholly-owned subsidiaries.

"The board...approved the proposal for divestment either partly or wholly the equity stake of the company in 5 BOT (HAM projects) namely DBL Mangloor Highways Pvt Ltd, DBL Sangli Borgaon Highways Pvt Ltd, DBL Borgaon Watambare Highways Pvt Ltd, DBL Mangalweda Solapur Highways Pvt Ltd and DBL Chandikhole Bhadrak Highways Pvt Ltd, wholly owned subsidiaries of our company (formed in the nature of special purpose vehicles (SPVs)) to one or more potential investors," the company said in a BSE filing.

The approval was given in the board meeting held on Monday, the filing said.

The board approved "dilution of shareholding percentage in the SPVs in such a manner that the company may cease to exercise control over the said SPVs including further issue of share capital...to the investor by the said SPVs, in a phased manner over a period of time," the filing said.