HCC completes 74% stake sale in Nirmal BOT

HCC Concessions Ltd, a subsidiary of Hindustan Construction Company Ltd (HCC), has completed stake sale in its annuity project in Andhra Pradesh housed under Nirmal BOT Ltd to a subsidiary of IDFC Alternatives-managed infrastructure fund, as per a stock market disclosure. 

Highway Concession, controlled by a fund under IDFC Alternatives, has acquired 74 per cent stake in the project upfront while the remaining stake is expected to be acquired post approval from NHAI. 

The latest announcement has not said anything on the remaining stake. 

"This investment is in continuation with our road sector aggregation strategy of acquiring controlling stake in operating road assets. This acquisition also reinforces our intention to partner with sponsors with proven track record in the sector. We look forward to continue working with the HCC Group in the future as well," MK Sinha, managing partner and CEO of IDFC Alternatives had said last year about the deal.

HCC Concessions, the infrastructure development arm of HCC Group, serves infra needs in the areas of transportation, power and urban infrastructure. The company is backed by Xander Advisors India which invested $54.31 million in July 2011.

Nirmal BOT was the first BOT project of the HCC Group which got completed in July 2009. It comprises 30 km road and connects Kadtal to Armur on NH-7 in Telangana. The total cost production was Rs 315 crore.

On Wednesday, India Infrastructure Fund-II, an alternate fund sponsored by IDFC Alternatives, acquired another similar asset and bought 37 per cent stake in a road project of infrastructure firm Welspun Enterprises Ltd at an enterprise value of Rs 662 crore (about $100 million).

The second infrastructure fund of IDFC Alternatives raised a massive corpus of Rs 5,500 crore ($900 million) last year for investment in Indian infrastructure assets. 

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