Welspun sells off six road projects to UK’s Actis PE
ROADS & HIGHWAYS

Welspun sells off six road projects to UK’s Actis PE

Welspun Enterprises has sold six operational road projects to Actis Private Equity for an enterprise value of Rs 60 billion, including liabilities, as it seeks to focus on the most competitive parts of its business portfolio.

Welspun’s deal with UK’s Actis covered two highway projects in Maharashtra, two in Uttar Pradesh linking to Uttarakhand, and two in Delhi. Five of the six toll roads have a hybrid annuity model, where the concessionaire gets a fixed pay-out from the National Highways Authority of India (NHAI).

The enterprise value of the six highway projects included a debt of Rs 36.27 billion and equity of Rs 23.73 billion. However, it did not include construction-linked milestone payments of Rs 30 billion received/receivable from NHAI and the Public Works Department (PWD) of Maharashtra. So, the six road projects sold by Welspun were valued at Rs 90 billion.

Including this deal, the Welspun Group, led by B K Goenka, has monetised assets worth Rs 190 billion in eight years. It is also evaluating the sale of its oil and gas business as part of its rejig strategy.

Welspun is left with two under-construction road projects, one in Tamil Nadu and the other in Bihar. Actis has the right of first refusal of these two assets as and when Welspun decides to sell them. The two projects entail a total cost of Rs 39 billion.

See also:
Mumbai Coastal Road Project is 67% done
Nitin Gadkari approves four-laning of NH-753L


Welspun Enterprises has sold six operational road projects to Actis Private Equity for an enterprise value of Rs 60 billion, including liabilities, as it seeks to focus on the most competitive parts of its business portfolio. Welspun’s deal with UK’s Actis covered two highway projects in Maharashtra, two in Uttar Pradesh linking to Uttarakhand, and two in Delhi. Five of the six toll roads have a hybrid annuity model, where the concessionaire gets a fixed pay-out from the National Highways Authority of India (NHAI). The enterprise value of the six highway projects included a debt of Rs 36.27 billion and equity of Rs 23.73 billion. However, it did not include construction-linked milestone payments of Rs 30 billion received/receivable from NHAI and the Public Works Department (PWD) of Maharashtra. So, the six road projects sold by Welspun were valued at Rs 90 billion. Including this deal, the Welspun Group, led by B K Goenka, has monetised assets worth Rs 190 billion in eight years. It is also evaluating the sale of its oil and gas business as part of its rejig strategy. Welspun is left with two under-construction road projects, one in Tamil Nadu and the other in Bihar. Actis has the right of first refusal of these two assets as and when Welspun decides to sell them. The two projects entail a total cost of Rs 39 billion. See also: Mumbai Coastal Road Project is 67% doneNitin Gadkari approves four-laning of NH-753L

Next Story
Infrastructure Transport

Railway stations in Prayagraj undergo major passenger facility expansion

The Railway Board Chairman and CEO, Satish Kumar, conducted an extensive inspection on Saturday alongside the General Manager of Northern Railway and the officiating General Manager of North Central Railway. Their visit focused on various ongoing projects at multiple stations across the Northern and North Central Railway zones, with particular attention to enhancing facilities for the upcoming Maha Kumbh. During the inspection, Chairman Kumar reviewed the construction of a vital bridge over the River Ganga, specifically between Jhunsi and Prayagraj Rambagh. This bridge is expected to significa..

Next Story
Infrastructure Transport

Madurai-Thoothukudi broad gauge line works under review

The construction of the Madurai-Thoothukudi broad gauge line, which includes the crucial Melmarudur-Tiruparankundram project, is currently under careful review. This update comes from Southern Railway's assistant public information officer, J Kumarasubramanian, following an RTI inquiry made by a concerned citizen, Dayanand Krishnan. The new broad gauge line is projected to cover a total length of 143.5 km, with the initial 18 km stretch between Milavittan and Melmarudur completed and sanctioned by the Commission of Railway Safety on March 8, 2022. While substantial progress has been made on t..

Next Story
Real Estate

DLF expects Rs 26,000 cr from super luxury project in Gurugram

Realty giant DLF is projecting impressive revenue of Rs 26,000 crore from its newly unveiled super-luxury project, The Dahlias, situated in the heart of Gurugram. Ashok Tyagi, the Managing Director of DLF, shared these insights during a recent conference call with market analysts, highlighting the project's potential amidst rising demand for high-end residential properties. The Dahlias project spans an expansive 17 acres and is set to feature approximately 420 ultra-luxury apartments, each boasting a minimum size of 10,300 square feet. This ambitious development has already garnered significan..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000