Welspun Enterprises to divest highway projects portfolio worth ~Rs 9,000 crore to Actis; stock slips ~3%

23 Dec 2022 , 11:15 AM

Welspun Enterprises Limited informed that it has executed definitive agreements with Actis Highway Infra Limited to exit from its operating road concessions portfolio. 

The portfolio comprises of 5 completed HAM Assets namely, Welspun Delhi Meerut Expressway Private Limited, Welspun Road Infra Private Limited, MBL (CGRG) Road Limited, Chikhali Tarsod Highways Private Limited, MBL (GSY) Road Limited, and one operating BOT Toll asset, Welspun Infrafacility Private Limited.

After accounting for net current assets and other closing parameters, the total transaction’s Cumulative Enterprise Value (Enterprise Value) is Rs5,853 crore. As of the date of the First Closing, the Completed Highway Portfolio has outstanding senior debt of Rs3,544 crore, including undisbursed debt of Rs59 crore in the BOT-Toll asset.

However, the aforementioned EV does not include construction-related milestone/grant payments totaling approximately Rs2,929 crore already received and Rs267 crore still owed to NHAI and PWD. As a result, the Completed Highway Portfolio is worth approximately Rs9,049 crore.

Following the exit from the completed highway portfolio, the company’s road asset portfolio would consist of two under construction HAM road projects (Sattanathapuram – Nagapattinam Road Project and Aunta – Simaria Road Project) with a total project cost of Rs3,900 crore.

As of September 30, 2022, the Company’s EPC order book was worth approximately Rs11,400 crore, with Rs6,400 crore in the water sector and the remaining Rs5,000 crore in the road sector.

At around 11.19 AM, Welspun Enterprises’ counter slipped 3.11% at Rs154.45 against previous close of Rs159.40 on NSE. The counter hit an intraday high and low of Rs159.30 and Rs151.25 respectively.

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