Edelweiss Alternative Asset Advisors on Sunday said its alternate investment fund, Edelweiss Infrastructure Yield Plus, along with Sekura Roads has acquired two road assets of Vishakhapatnam headquartered Navayuga Group. It, however, did not disclose the acquisition amount. The fund has acquired two road assets including Navayuga Dhola Infra Projects in Assam and Navayuga Dibang Infra Projects in Arunachal Pradesh. “These assets have been acquired from Navayuga Road Projects, a subsidiary of Navayuga Engineering Company, making this one of the first infrastructure deals closed in the current lockdown environment,” the company said in a statement.
According to industry sources, the approximate value of the transaction could be around USD 150 million (about Rs 1,125 crore). Sekura Roads is the road and highway infrastructure platform of the fund, focused on acquiring operating road assets. “With the acquisition of these road assets, Sekura Roads starts its journey to become one of the leading asset owners and investors in the road sector. “The fund is looking to contribute in a sustainable manner to the growing infrastructure assets needs of the country by helping the Indian infrastructure companies to recycle their capital and focus on their core construction business,” the company said.
With assets of over Rs 28,000 crore under management, Edelweisse focuses on providing long term growth capital to corporates, it said. “Acquiring operating infrastructure assets provides impetus to the revival of the sector by helping construction companies to release capital and de-lever, enabling them to commence new projects which contribute to nation building and is becoming the core model to meet India’s infrastructure capital requirement,” Edelweiss Global Investment Advisory Deputy CEO Hemant Daga said.
The acquisition of these assets by the fund is a testament to its willingness, ability and capability to complete transactions despite the prevailing challenging conditions, he added. “This acquisition is in line with our strategy of investing in infrastructure assets which can deliver predictable long-term yield to our investors. We now have a healthy portfolio of operating transmission and operating annuity road assets,” Edelweiss Infrastructure Yield Plus Head Subahoo Chordia said.
Commenting on the deal, Navayuga Group CFO Sachin Bhansali said, “We are looking to de-leverage our balance sheet and asset monetisation is a critical component. This transaction will significantly ease out the debt position of the group and help free up cash.” With the government’s thrust on boosting economic activity in north eastern India, the Dhola and Dibang roads are of strategic importance because they ensure seamless all-weather connectivity between north east and rest of India, the release said.