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Dilip Buildcon to sell 24 SPVs to Shrem Group for Rs1,600 crore

LiveMint logoLiveMint 24-08-2017 PTI

New Delhi: Construction firm Dilip Buildcon on Thursday said it has entered into a pact with Chhatwal Group Trust (Shrem Group) to sell its 24 subsidiaries, having a total project value of Rs10,500 crore.

The highways builder is expected to get Rs1,600 crore through the transaction.

The company has signed a “term sheet with Chhatwal Group Trust (Shrem Group) for divestment by way of sale, transfer or disposal of 24 subsidiaries of the company with a total project value of Rs10,500 crore (approx),” it said in a filing to the BSE.

The company said the agreement for divestment of special purpose vehicles (SPVs) was signed on Thursday. It said the sale is for 14 operational projects, four under construction projects and six HAM (hybrid, annuity, mode) projects, which are at different stages of under-construction and pre-construction.

The company, on 30 June, 2017, had said it has already invested (in the form of equity and sub 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 builder 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, the filing said.

“So to sum up, the total amount already invested (in the form of equity and sub debt) by the company as on 30 June is Rs681.99 crore, while an amount of Rs 841.61 crore is yet to be invested against which company is expecting to receive a total of Rs1,600 crore (approx) through this transaction,” the filing said.

The shares of the company closed at Rs593 apiece on the BSE, up 2.61% from the previous close.

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