Welspun Enterprises to exit from six operational Highway Projects to Actis, worth $775 million

has executed definitive agreements to exit its portfolio of operating road concessions ("Highway Portfolio") to Actis Highway Infra Limited

Welspun Enterprises
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Pursuant to the approval of the Board of Directors of Welspun Enterprises Limited, the Company has executed definitive agreements to exit its portfolio of operating road concessions (“Highway Portfolio”) to Actis Highway Infra Limited (“Actis”) for an aggregate Enterprise Value (“EV”) of approximately ₹ 6,000 cr (Rupees Six Thousand Crores only). The Highway Portfolio comprises of 5 completed HAM assets (Welspun Delhi Meerut Expressway Private Limited, Welspun Road Infra Private Limited, MBL (CGRG) Road Limited, MBL (GSY) Road Limited, Chikhali Tarsod Highways Private Limited) and one operating BOT-Toll asset (Welspun Infrafacility Private Limited).

It may be noted that the aforesaid EV excludes construction linked milestone / grant payments of approximately ₹ 3,000 cr (Rupees Three Thousand Crores only) received/receivable from National Highways Authority of India (“NHAI”) and Public Works Department of Government of Maharashtra (“PWD”), thus, valuing the Highway Portfolio being exited at approximately ₹ 9,000 cr (Rupees Nine Thousand Crores only).

The Highway Portfolio as on the date of First Closing is expected to have a debt of ₹ 3,627 cr (Rupees Three Thousand Six Hundred Twenty Seven Crores only) and a total equity investment of ₹ 1,613 cr (Rupees One Thousand Six Hundred Thirteen Crores only). The completion of the above transaction is subject to completion of customary and regulatory compliances and approvals from NHAI, PWD, and lenders.

actis

Post this proposed exit, the Company’s road asset portfolio would comprise of two underconstruction HAM road projects (Sattanathapuram – Nagapattinam and Aunta – Simaria Road projects) which have a total project cost of ~₹ 3,900 cr. The Company has a robust EPC order book of ~₹ 12,500 cr, comprising of ~₹ 6,500 cr in water sector and balance ~₹ 6,000 cr in road sector.

Aligning with this objective, five of the six toll roads have a Hybrid Annuity concession, whereby the concessionaire gets a fixed pay-out to ensure road availability.

“This is a strong, first of its kind, investment for ALLIF, which fully aligns with the fund’s core objective – to invest globally in infrastructure assets that provide consistent yield for our investors,” said Adrian Mucalov, Partner, Head of Long Life Infrastructure at Actis.

Shares of Welspun Enterprises Ltd was last traded in BSE at ₹93.75 as compared to the previous close of ₹96.20. The total number of shares traded during the day was 18659 in over 703 trades.

The stock last hit in BSE,

  • Intraday High of ₹ 109.50
  • Intraday low of ₹ 100.20