Reliance Infrastructure (Rel Infra), an Anil Ambani group firm, is selling its entire stake in the Delhi-Agra Toll Roadway to Singapore-based Cube Highways for Rs 3,600 crore. The transaction is expected to bring down its debt by 25 per cent to less than Rs 5,000 crore.
Rel Infra on Thursday announced that it had signed a definitive binding agreement with Cube Highways and Infrastructure III Pte Ltd for the sale of its 100 per cent stake in Delhi-Agra (DA) Toll Road Pvt Ltd.
Cube Highways and Infrastructure III Pte Ltd is a Singapore-based company formed by global infrastructure fund I Squared Capital and a wholly-owned subsidiary of the Abu Dhabi Investment Authority.
The transaction is in line with the company’s strategic plan to monetise its non-core business and focusing on major growth areas such as engineering & construction (E&C) business.
“The total deal enterprise value is over Rs 3,600 crore. In addition, the NHAI claims of Rs 1,200 crore to be filed by DA Toll Road Pvt Ltd will flow directly to Reliance Infrastructure,” the company said.
Rel Infra further said it will utilise the proceeds of the deal to entirely reduce its debt.
Reliance Infrastructure's special purpose vehicle (SPV) DA Toll Road Private Limited operates the 180-km long six-lane road that connects the national capital Delhi with Agra on National Highway (NH) 2.
“The profitable project has witnessed impressive revenue growth of 25 per cent in 2017-18,” the company said. The toll operation for the heavily-trafficked project started in October 2012 and has a concession period till 2038.
On the BSE, the Rel Infra scrip ended 3.59 per cent lower at Rs 124.90.
Rel Infra is an infrastructure player, developing projects through various special purpose vehicles in various sectors such as power, roads and metro rail in the infrastructure space and the defence sector. It also provides engineering and construction services for developing power, infrastructure, metro and road projects. The company through its SPVs has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai and eleven road projects with total length of about 1,000 km.
The announcement however, did not improve sentiment on the stock at the bourses today. At the BSE, the RInfra scrip ended 3.59 per cent lower at Rs 124.90.
