Welspun Enterprises sells 37% stake in road JV for Rs 662 cr

Firm still owns 13% in Dewas Bhopal Corridor, which can be sold in two years after approval of MP Road Development Corp

Welspun Enterprises Ltd today said it has divested 37 per cent stake in its joint venture firm Dewas Bhopal Corridor Pvt Ltd for Rs 662 crore to the IDFC-sponsored fund, India Infrastructure Fund.

"Welspun Enterprises entered into a definitive agreement with India Infrastructure Fund, the IDFC-sponsored fund. As per the agreement, the company has sold 37 per cent equity stake in Dewas Bhopal Corridor Pvt Ltd (DBCL), a 50 per cent joint venture of the company, at an enterprise value of Rs 6.62 billion (Rs 662 crore)," Welspun Enterprises said in a BSE filing.

The enterprise value of Rs 662 crore includes a contingent deferred consideration of Rs 34 crore and debt of Rs 317 crore.

It further said: "The company still owns 13 per cent equity stake in DBCL, which can be transferred in two years subject to approval of Madhya Pradesh Road Development Corporation Ltd."

Shares of Welspun Enterprises were trading at Rs 56.80 apiece, up 9.76 per cent, from their previous close on BSE.