GR Infraprojects (GR Infra) has sold majority equity stakes in two BOT road assets for an enterprise value of Rs 800 crore to IDFC Alternatives’ India Infrastructure Fund II (IIF II). IDFC Alternatives, the alternate asset management arm of IDFC, invests via three asset classes — private equity, infrastructure and real estate. It boasts $3.6 billion worth of assets under management; it now runs four private equity funds, two infrastructure equity funds and three real estate funds.
The two projects bought by IDFC are Jodhpur Pali Expressway (JPEL) and Shillong Expressway (SEL). JPEL is an operational BOT toll asset awarded by Rajasthan’s Public Works Department, with a concession period of 25 years. SEL is an operational BOT annuity based project in Meghalaya awarded by the National Highways Authority of India (NHAI).
The remaining shareholding of both the assets will also be sold to IIF II upon completion of other closing requirements, as per the terms and conditions of the share purchase agreements, said a company statement.
Commenting on the deal, GR Infra managing director Vinod Agarwal said that the asset sales are a part of GR Infra’s strategy to focus on their EPC business, coupled with efficient churn of invested capital to fund further growth.
GR Infraprojects is a road EPC company with experience in design and construction of various road/highway projects in around 12 states. The company owned three operational road projects constructed and developed by it on BOT basis.
Ajay Garg, managing director of Equirus Capital, the transaction advisor for the deal, said that the first six months of financial year 2016-2017 were tough in terms of deal tractions, and then a lot of transactions got stuck because of demonetisation. However, post-February, things have started looking up.