IDFC Alternatives will be acquiring stakes of NCC Infrastructure Holdings and Soma Enterprise in a special purpose vehicle (SPV) called Bangalore Elevated Tollway (BETL), through its India Infrastructure Fund II. The enterprise value of the deal is Rs 750 crore.
NCC and Soma hold 38% stake each in the SPV, while the remaining 24% is held by IL&FS Engineering and Construction Company. The project entailed an investment of Rs 765 crore, according to the information on IL&FS wesbite.
BETL operates a 34 km road, including 10 kms four lane elevated highway project connecting Silk Board (8.765 km) to Electronic City junction (18.750 km) section, on NH-7 in Bangalore, Karnataka.
The project built on a build, operate and transfer (BOT) basis for the National Highways Authority of India (NHAI), became fully operational in April 2010, on a 20 years concession period.
According to CARE ratings report of August 2015, the concession agreement between BETL and NHAI was executed in January 2006. The scheduled project completion date was July 24, 2008.
However, the commercial operation date or COD for the project was on April 7, 2010. The delay in completion of the project was mainly due to delay in acquisition and handing over of land by NHAI to the company, CARE report said.
“The final project cost was Rs 990.36 crore as against original project cost of Rs 775.72 crore,” according to CARE.
Post the completion of the transaction, IDFC will own majority stake of 76% in the project with the acquisition of NCC’s and Soma’s stakes. The divestment entails NCC and Soma’s full exit from BETL including through sale of preference shares held and repayment of shareholder loans held by both, a statement said.