Engineering, procurement and construction (EPC) services provider Ashoka Buildcon Ltd, has agreed to acquire 8.51 per cent equity stake in Jaora-Nayagaon Toll Road Co. Pvt Ltd (JTCL) from Agra-based infrastructure firm PNC Infratech Ltd (PNC) for about Rs 34.19 crore.
Ashoka Buildcon has entered into a share purchase agreement with PNC under which it will buy 24.42 million equity shares in JTCL through its subsidiary Viva Highways Ltd, it said in a stock market disclosure.
JTCL is responsible for design, construction, finance, strengthening, widening, operation and maintenance of the four-lane Jaora Nayagaon section of state highway number 31 in Madhya Pradesh. The project is on build, operate and transfer (BOT) basis, the filing said.
The completion of the transaction is however subject to conditions mentioned in the SPA, including receipt of approval of the lenders of JTCL.
Ashoka Buildcon is a leading player in the toll-based BOT project space in India. The firm designs and constructs residential, commercial, industrial and institutional buildings.
It is also active in the power transmission and distribution sector with power projects in Tamil Nadu, Maharashtra, Chhattisgarh and Bihar. In April this year, Ashoka Buildcon had raised Rs 500 crore (approximately $78 million) through a qualified institutional placement to fuel its growth.
PNC, backed by private equity firm Jacob Ballas, specialises in construction of highways, bridges, flyovers and airport runways. The company recently raised Rs 486 crore through its initial public offering. The IPO was subscribed 1.54 times.