10 Jun 2022 , 10:04 AM
The Highway Portfolio comprises of 5 completed HAM assets (Welspun Delhi Meerut Expressway Private Limited, Welspun Road Infra Private Limited, MBL (CGRG) Road Limited, MBL (GSY) Road Limited, Chikhali Tarsod Highways Private Limited) and one operating BOT-Toll asset (Welspun Infrafacility Private Limited).
In a regulatory filing, the company said that it may be noted that the aforesaid EV excludes construction linked milestone / grant payments of ~Rs3,000 crore received/receivable from National Highways Authority of India and Public Works Department of Government of Maharashtra ("PWD"), thus, valuing the Highway Portfolio being exited at ~Rs9,000 crore.
The Highway Portfolio as on the date of First Closing is expected to have a debt of Rs3,627 crore and a total equity investment of Rs1,613 crore. The completion of the above transaction is subject to completion of customary and regulatory compliances and approvals from NHAI, PWD, and lenders, said company.
Post this proposed exit, the Company’s road asset portfolio would comprise of two under-construction HAM road projects (Sattanathapuram - Nagapattinam and Aunta — Simaria Road projects) which have a total project cost of ~Rs3,900 crore. The Company has a robust EPC order book of ~Rs12,500 crore, comprising of ~Rs6,500 crore in water sector and balance ~Rs 6,000 crore in road sector.
Commenting on this development, B. K. Goenka, Chairman, Welspun Group said, "This is a landmark moment for the Company. We won India’s first road HAM project in 2016 and during the last 5 years created a strong portfolio of over Rs12,000 crore in the road sector and Rs6,500 crore by way of EPC orders in the water sector, while leveraging our strong sector knowledge and experience. With this proposed transaction, we will deliver to our stakeholders the entire value chain of successfully winning-constructing-stabilizing-monetizing of Road Assets. Similarly, we will explore exiting the balance under-construction Road Assets and Oil and Gas Assets at the right time and at the right value.”
At around 10:00 AM, Welspun Enterprises was trading at Rs105.50 apiece up by Rs5.35 or 5.34% from its previous closing of Rs100.15 apiece on the BSE.
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