HCC Concessions Ltd, a subsidiary of Hindustan Construction Company Ltd (HCC), is selling its stake in Dhule Palesner Tollway Ltd to its JV partner Sadbhav Group for Rs 204 crore ($32.7 million), as per a stock market disclosure. The deal is subject to necessary approvals and will close shortly.
HCC Concessions is also expected to realise around Rs 24 crore from additional claims to be made to the NHAI towards this project.
Dhule Palesner Tollway project was awarded in 2009 to a HCC-led consortium comprising Sadbhav Group and UK-based John Laing. It is a Rs 1,420 crore public-private-partnership (PPP) project, a part of NH-3 and started commercial operations in February 2012.
“The sale of Dhule furthers our goal of exiting de-risked, operational assets. Dhule has had an exemplary operational record over the past three years post its commissioning in 2012, four months ahead of schedule," said Arjun Dhawan, president and CEO of HCC Concessions.
Last December, the company sold its annuity project in Andhra Pradesh housed under Nirmal BOT Ltd, to Highway Concession One Pvt Ltd, for Rs 64 crore ($10.3 million then).
HCC Concessions, the infrastructure development arm of HCC Group, is backed by Xander Advisors India which invested $54.31 million in July 2011.
Shares of HCC were trading at Rs 34.30 each, up 1.78 per cent on BSE in a weak Mumbai market on Friday at 2.43 PM.
Started in 2007, Sadbhav specialises in roads related build-operate-transfer (BOT) projects. All projects are implemented and held through special purpose vehicles, including joint venture entities.
Its operations are spread across Maharashtra, Gujarat, Rajasthan, Karnataka, Haryana, Madhya Pradesh and Telangana besides border check posts in Maharashtra.
The company has recently got SEBI's approval for its IPO.
(Edited by Joby Puthuparampil Johnson)