India: Dilip Buildcon to sell 24 road assets to Shrem Group for $250m

Photographer: Prashanth Vishwanathan/Bloomberg

Infrastructure developer Dilip Buildcon Ltd has signed a term sheet with privately owned family business Chhatwal Group Trust (Shrem Group) to sell its entire stake in 24 of its road projects for Rs1,600 crore, the company said in a filing to stock exchanges.

The sale includes 14 operational road projects, four under construction projects and six projects under the hybrid annuity model (HAM), which are in different stages of construction and pre-construction.

The transaction is expected to be completed by 31 March 2019, the company said.

These subsidiaries collectively have a project value of approximately Rs10,500 crore. In fiscal 2017, these units jointly contributed Rs222.33 crore in revenue, which is 4.17% of the firm’s total turnover.

Dilip Buildcon has made a total investment of around Rs682 crore in equity and debt across these 24 projects as of 30 June, the company said.

“As of 30 June 2017, the company has invested (in the form of equity and debt) an amount of Rs453.72 crore in 14 operational projects while an amount of Rs12.57 crore is yet to be invested in these projects. Similarly the company has invested Rs221.91 crore in four under construction projects while an amount of Rs95.96 crore is yet to be invested in these projects. Finally, the company has invested Rs6.36 crore in six HAM projects while an amount of Rs733.08 crore is yet to be invested in these projects,” Dilip Buildcon said in the statement.

The Shrem group of companies, established in 2011, is a privately owned family business spearheaded by brothers Nitan Chhatwal and Hitesh Chhatwal.

In March 2017, they entered the infrastructure sector with investment in the Tuljapur-Ausa project of Dilip Buildcon, which is being developed under the hybrid annuity model.

Bhopal-based Dilip Buildcon started out in 1989 with a real estate construction business, and later entered into water and sewage treatment, construction of roads, dams, canals and residential buildings on an engineering, procurement and construction basis.

The company went public in August last year in an initial public offering (IPO) that saw the company, its promoters and its private equity investor raise Rs664 crore.

On Thursday, shares of Dilip Buildcon gained 2.61% to close at Rs593 on BSE, while the exchange’s benchmark Sensex rose 0.09% to close at 31,596.06 points.

Also Read:

India: Dilip Buildcon IPO subscribed 69.5% on Day 2

India: Dilip Buildcon to launch IPO by July-end, PE fund BanyanTree to part-exit

This article was first published on Livemint.com

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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