IDFC arm invests Rs 100 cr in Ashoka Buildcon

Infrastructure Development Financial Corporation Private Equity (IDFCPE) has decided to invest Rs 100 crore in the Nashik-based Ashoka Buildcon (ABL), a mid-sized BOT (build-operate-transfer) operator for infrastructure projects.

ABL, an unlisted company, has set the target worth Rs 1,500 crore for the current financial year.

The agreement was signed between Ashoka Buildcon and IDFCPE by Luis Miranda, chairman and CEO, IDFCPE, and Ashok Katariya, chairman, ABL on Monday in Mumbai. SSKI Corporate Finance was the financial advisor for ABL.

Talking to newspersons, Satish Parakh, managing director, Ashoka Group, said, "IDFC Private Equity is investing Rs 100 crore in Ashoka Buildcon for company's growth. The investment will come under the India Development Fund (IDF) scheme. Ashoka Buildcon will pump in the money for making roads and highway projects."

He, however, did not disclose details of percentage of equity stake to be held by IDFC Private Equity.

"We have a target worth Rs 1,500 crore orders for the current fiscal. So far, the company has bagged orders worth Rs 500 crore. We plan to set up a hydro-based power generation project with 25 megawatt capacity in Himachal Pradesh," Parakh said.

Ashoka Buildcon started as a construction firm in 1975 and has evolved into a major BOT operator for infrastructure projects in the country.

The company has found a place in the Limca Book of Records for completing RCC-casting Mandavi Bridge in 38 days' time. The company builds projects on BOT-basis and runs them for a specific period before transferring to the government.

ABL has successfully completed 10 projects on BOT-basis. They include: Indore-Edlabad Road (203 kms) and East Coastal Way, connecting Chennai with Pondicherry. Besides, ABL also supplies readymix concretes in Mumbai, Pune, Indore and Surat.