KNR Constructions Photo Credit: Shah Junaid/VCCircle

KNR Constructions sells stake in two road assets to Essel group firm

14 November, 2016

Infrastructure development company KNR Constructions Ltd has agreed to sell its entire equity stake in two build–operate–transfer (BOT) road assets to an Essel group company.

The enterprise value of the two road assets – Patel KNR Infrastructure Ltd (PKIL) and Patel KNR Heavy Infrastructure Ltd (PKHIL) – is Rs 850 crore, KNR Constructions said in a stock market disclosure.

K Jalandhar Reddy, executive director of KNR Constructions, said the BOT asset sale is part of KNR group’s strategy to focus on its engineering, procurement, construction (EPC) business.

The transaction, which is expected to be completed within three months, is subject to approvals from lenders and National Highways Authority of India (NHAI), it said.

Essel group, promoted by Subhash Chandra, has presence in various sectors, including media, entertainment, packaging, infrastructure and education and technology, among others. The group’s listed entities have a combined market capitalisation of over $6 billion. 

Equirus Capital acted as transaction advisor to KNR Constructions for the transaction. 

“The transaction is in line with the trend seen across the roads sector where institutional money is chasing operational cash flows and helping in debt reduction of infrastructure conglomerates,” said Ajay Garg, managing director, Equirus Capital.

Law firm Cyril Amarchand Mangaldas (Delhi) was legal advisor to KNR Constructions while Luthra and Luthra Law Offices advised the Essel group.

Early in September, a joint venture between KNR Constructions and BSCPL Infrastructure Ltd bagged a project for four-laning of the Hubli-Hospet section for Rs 2,293 crore.

In another transaction in the sector, in August, Singapore-based Cube Highways & Infrastructure Pte. Ltd, a joint platform of private equity firm I Squared Capital and International Finance Corporation (IFC), agreed to acquire a road project from IL&FS Transportation Networks Ltd for Rs 140.37 crore ($21 million).

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
Exclusive: Essel Group mulls public issue for infra business

Exclusive: Essel Group mulls public issue for infra business

Bruhadeeswaran R 8 months ago
Subhash Chandra-promoted Essel Group is planning to take its infrastructure unit Essel Infraprojects Ltd public as a whole or divide it into segments as part...
J.P. Morgan Invests $110M In Hyderabad's Soma Group

J.P. Morgan Invests $110M In Hyderabad's Soma Group

TEAM VCC 1 year ago
J.P. Morgan Asset Management is investing $110 million or around Rs 500 crore in Hyderabad-based Soma Group, which is involved in construction and development of...
Koovs leads funding action last week; Samsung, Essel Infraprojects in M&A deals

Koovs leads funding action last week; Samsung, Essel Infraprojects in M&A deals

Keshav Sunkara 9 months ago
London Stock Exchange-listed Koovs plc, the parent of online fashion marketplace Koovs, led the funding activity last week as it secured $13.52 million from a...
No Comments

KNR Constructions sells stake in two road assets to Essel group firm

Powered by WordPress.com VIP