Welspun Entp on good roads

Welspun Enterprises is among the top five gainers on the BSE. The stock opened 4% higher at Rs.104 and rose to an intraday high at Rs.108.90, up 9%. Its 52-weel high is at Rs.126.95.

The company announced yesterday night that it has signed definitive agreements to exit its portfolio of operating road concessions ("Highway Portfolio") to Actis Highway Infra for an aggregate Enterprise Value of Rs6,000 crore.

The Highway Portfolio comprises of 5 completed HAM assets and one operating BOT-Toll asset.

This excludes construction linked milestone / grant payments of Rs3,000 crore received/receivable from National Highways Authority of India and Public Works Department of Government of Maharashtra thus, valuing the Highway Portfolio being exited at Rs9,000 crore.

The Highway Portfolio as on the date of First Closing is expected to have a debt of Rs3,627 crore and a total equity investment of Rs1,613 crore. 

Post this proposed exit, the company’s road asset portfolio would comprise of two under-construction HAM road projects (Sattanathapuram - Nagapattinam and Aunta – Simaria Road projects) which have a total project cost of Rs3,900 crore.

The company’s EPC order book stands at Rs.12,500 crore, comprising of Rs.6,500 crore in water sector and balance Rs 6,000 crore in road sector.