Ashoka Buildcon will buy out Global Infrastructure Partners’ (GIP) fund from a special purpose vehicle focused on a road project for around Rs 36 crore.
It has entered into an agreement with India Infrastructure Fund to buy its 49 per cent stake in Ashoka Highways (Bhandara) Ltd.
After the transaction, Ashoka Buildcon along with subsidiaries will own 100 per cent of the vehicle.
The infrastructure firm has a presence across road and power transmission and distribution sectors.
Ashoka Highways (Bhandara) was incorporated for construction, operation and maintenance of a section of NH-6 in the states of Chhattisgarh and Maharashtra.
The project, awarded by the National Highways Authority of India in December 2006, was completed in 2010 and has been collecting toll since then. In 2019-20, it had a turnover of roughly Rs 71 crore.
As per a report by Reuters, India Infrastructure Fund had put in roughly $50 million in the road project. It is now getting about Rs 36 crore from exit, in addition to the tolls collected over the years.
India Infrastructure Fund was floated by alternatives investment arm of IDFC Group. Later, IDFC Alternatives sold its infrastructure asset management business to US-based private equity firm GIP, thereby pushing the India Infrastructure Fund series under the GIP umbrella.