- 27 Dec 2021
- ICICIdirect Research
Sale of stake in subsidiaries of Ashoka ConcessionsASHOKA - 73 Change: -0.90 (-1.22 %)
News: Ashoka Buildcon via Ashoka Concessions has entered into a share purchase agreements with Galaxy Investments II Pte. Ltd – a KKR arm for sale of the entire share capital (which will also include repayment of any shareholder loans) held in the subsidiaries: Ashoka Highways (Bhandara), Ashoka Highways (Durg), Ashoka Belgaum Dharwad Tollway, Ashoka Sambalpur Baragarh Tollway and Ashoka Dankuni Kharagpur Tollway for an aggregate consideration of Rs.1,337 crore.
Views: Ashoka Buildcon was in discussions with several investors for the asset sale and was expecting the deal completion by FY22-end. The asset sale was much-awaited and the proceeds for the deal are likely to provide exits to its investor: SBI- Macquarie. In the recent past, the obligation towards the investor had been revised downward from Rs.1,526 crore to Rs.1,100 crore, with a ceiling of Rs.1,200 crore. With successful asset monetisation, the company may get re-rated with higher order inflows, better revenue booking and decent margin levels.