M&As in road sector pick up over easier exit norms: Icra

But not much to cheer about as 31% deals in last two years were made at a loss to the investor

The country relaxed the exit policy for road projects under public-private partnership (PPP) model in May 2015. The move is showing results, with a higher amount of deals seen in the road sector in the last two years, according to rating agency ICRA Ltd.

The rise in deals, however, may not have brought cheer to a good number of road projects’ sponsors as the ICRA data suggest 31 per cent of the deals in the last two years were made at a loss to the investor.

“In about 31 per cent of the transactions, the return to the developers is negative, indicating