Bharat Road Network skyrockets ~15% on completing sale of 67-km road project stake to CDPQ

1 Jul 2022 , 10:02 AM

Bharat Road Network Limited, one of India's leading road developers, has completed the sale of its entire stake in Shree Jagannath Expressways Pvt Ltd to India Highway Concession Trust, a Caisse de dépôt et placement du Québec (CDPQ) infrastructure investment trust.

SJEPL operates a 67-kilometer toll road in Odisha from Bhubaneshwar to Chandikhole.

BRNL received the consideration, which was used to repay the respective debts, and is entitled to its proportionate share of the Rs700 crore in claims currently under conciliation with NHAI.

This divestment follows a SPA agreement signed in January last year between BRNL and its partners with IHCT for the complete transfer of ownership of SJEPL, the special purpose vehicle (SPV) engaged in the development, operation, and maintenance of a 67-kilometer toll road project in Odisha from Bhubaneswar to Chandikhole. With a 40% stake in the project, BRNL is currently the largest shareholder.

This is BRNL's second stake sale, and it has completely exited the road project in order to create value through portfolio realignment, deleveraging the balance sheet and strengthening the company's financials, and resolving any outstanding debt.

BRNL recently divested its entire 39% stake in a 126-kilometer toll road from Ghaziabad to Aligarh to Cube Highways, I Squared Capital portfolio company, for Rs450 crore.

Ghaziabad Aligarh Expressway Private Limited is the special purpose vehicle (SPV) in charge of the development, operation, and maintenance of a 126-kilometer toll project on National Highway 34 from Ghaziabad to Aligarh (NH34).

Bharat Road Network is currently trading at Rs36.80 up by Rs4.65 or 14.46% from its previous closing of Rs32.15 on the BSE. The scrip opened at Rs34.90 and has touched intraday high and low of Rs37.25 and Rs33.85 respectively.