Infrastructure developer Ashoka Buildcon is on the brink of finalizing a significant transaction with Sekura, an infrastructure platform backed by Edelweiss Infrastructure Yield Plus fund. Here's what you need to know about this landmark deal:
Overview of the Transaction:
- Ashoka Buildcon is set to sell a portfolio of 11 roads to Sekura for an equity value ranging between ₹2,200 to 2,300 Crore.
- The deal marks Ashoka Buildcon's largest asset monetization initiative in recent years.
- Funds from the transaction will be utilized to reduce debt and finance the development of ongoing and future infrastructure projects.
Details of the Road Portfolio:
- The portfolio consists of 11 roads, with nine operational and two under construction.
- These projects are strategically located across various states including Punjab, Jharkhand, Andhra Pradesh, Karnataka, Telangana, and Gujarat.
- While Ashoka Buildcon holds a 100% stake in four projects, its subsidiary Ashoka Concessions owns the remaining seven roads.
Other Asset Monetization Initiatives by Ashoka Buildcon:
- Apart from the Sekura deal, Ashoka Buildcon is actively engaged in divesting its stakes in the Jaora-Nayagaon BOT road project and the Chennai Outer Ring Road.
- The company recently completed the sale of its 51% stake in Unison Enviro Pvt Ltd to Mahanagar Gas Ltd.
- Talks are underway for the sale of a portfolio of five build-operate-transfer (BOT) road projects.
Sekura's Road Acquisitions:
- Sekura has been actively expanding its portfolio. In 2022, it signed a substantial deal to acquire eight roads and one transmission project from L&T Infrastructure Development Projects and Canada Pension Plan Investment Board.
- In 2020, Sekura acquired two road projects from the Navayuga group.
Trend in Road Project Acquisitions:
- Private equity investors, including infrastructure investment trusts (InvITs), have been increasingly involved in acquiring operational road projects.
- Highway Infrastructure Trust, backed by KKR, recently announced the acquisition of a dozen road projects from PNC Infratech Ltd.
- Actis revealed its acquisition of a portfolio of four HAM road assets from Patel Infrastructure Ltd.
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