Sadbhav Infra road projects monetisation: IndInfravit allots 18.88 cr units to certain investors

As part of monetisation of Sadbhav Infrastructure Project Ltd's nine operational road projects to L&T-run IndInfravit Trust,the InvIT has allotted 18.88 crore units to certain investors to raise up to Rs 2,205 crore.

Apart from this, the board has also approved preferential issue of up to 6.21 crore units at a price of Rs 116.75 per unit to SIPL for consideration other than cash, subject to the approval of unit holders of IndInfravit Trust, SIPL said in a BSE filing.

SIPL said IndInfravit board has approved the preferential allotment of up to 18.88 crore units at Rs 116.75 per unit aggregating to Rs 2,204.82 crore.

IndInfravit Trust is an InvIT sponsored by L&T Infrastructure Development Projects Ltd (L&T IDPL).

The allotment follows an agreement signed between IndInfravit and SIPL in last July to sell the latter's entire equity shareholding in nine operational road projects to the InvIT for an enterprise value of about Rs 6,610 crore.

As part of the transaction, SIPL will receive equity value of about Rs 2,550 crore, split as 10 per cent of IndInfravit units, and about Rs 1,900 crore in cash, the company had announced.

The deal, which was signed at 1.7x the initial equity investment made by SIPL of Rs 1,500 crore, will also lead to a de-consolidation of its net debt of Rs 4,060 crore.

SIPL's road portfolio comprises seven toll roads and two annuity projects with a total of 2,619 lane km spanning Gujarat, Karnataka, Maharashtra, Rajasthan and Telangana. These projects have been operational for about six years.

IndInfravit currently holds a portfolio of five operational toll road concessions.

The seven toll roads are Aurangabad-Jalna Tollway, Ahmedabad Ring Road Infrastructure, Bijapur-Hungund Tollway, Bhilwara-Rajsamand Tollway, Dhule-Palesner Tollway, Hyderabad-Yadgiri Tollway and Shreenathji-Udaipur Tollway.

The two HAM projects are Mysore-Bellary Highway and Nagpur-Seoni Expressway.

In addition to L&T IDPL, the other unit holders include Allianz Insurance Group represented by Allianz Capital Partners, Canada Pension Plan Investment Board and Omers Infrastructure.

Post-sale, SIPL will continue to own three operational roads and 12 under-construction projects under the HAM model.

"Our company currently expects to receive the stake sale proceeds in respect of certain road projects soon after the declaration of the results of unit holders meeting on January 31, and compliance with applicable law," it said.

Shares of SIPL on Wednesday closed at Rs 37.85 on the BSE, down about 2.49 per cent.