Welspun Enterprises update on divestment of Rs 9049 cr completed highway projects to Actis

Welspun Enterprises announced that the company has complied with all necessary Conditions Precedents (CP) and has obtained all necessary regulatory & statutory approvals for First Closing including National Highways Authority of India (NHAI), Public Works Department of Government of Maharashtra (PWD) and lenders for divestment of 100% stake in HAM assets and 49% stake in BOT-Toll asset (First Closing). Divestment of balance 51% stake in BOT-Toll asset shall be undertaken upon obtaining necessary regulatory and statutory approvals (Second Closing).

The Cumulative Enterprise Value (Enterprise Value) value for the entire transaction stands at Rs 5,853 crore after considering the net current assets and other closing parameters. The Completed Highway Portfolio as on the date of First Closing has outstanding senior debt of Rs 3,544 crore including undisbursed debt of Rs 59 crore in BOT-Toll asset. It may be noted that the aforesaid EV excludes construction linked milestone/ grant payments of approximately amounts equivalent to Rs 2,929 crore already received and an amount of Rs 267 crore further receivable from NHAI and PWD. Hence, the value of the Completed Highway Portfolio stands at approximately Rs 9,049 crore.

 

Post this exit from Completed Highway Portfolio, the Company's road asset portfolio would comprise of two under construction HAM road projects (Sattanathapuram - Nagapattinam and Aunta - Simaria Road projects) which have a total project cost of Rs 3,900 crore. The EPC order book, as of 30 September 2022, for the Company stood at a robust value of approximately Rs 11,400 crore, comprising of Rs 6,400 crore in water sector and balance Rs 5,000 crore in road sector.

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