Madhucon Projects Ltd, a subsidiary of Madhucon Group, has signed a term sheet with Tata Sons' construction company TRIL Roads to divest its 74 per cent stake in its subsidiary Madhucon Agra-Jaipur Expressways Ltd, the company said in a statement.
Madhucon Agra-Jaipur Expressways Ltd, a special purpose vehicle developed by Madhucon Projects and SREI Infrastructure Finance, is engaged in strengthening and widening the existing 57 km stretch between Bharatpur and Mahwa (both in Rajasthan) on NH11.
This National Highway Authority of India (NHAI) project also provides connectivity between NH8 (connecting Mumbai-Delhi) and NH2 (connecting Kolkata-Delhi) and forms a part of the Golden Quadrilateral.
The project has a concession period of 25 years starting October 31, 2005.
The company did not disclose financial details of the deal.
Another investor SREI Infrastructure Finance Ltd owns 7 per cent in the project. Though the company was looking to exit, it is not clear if it has also divested its stake in the latest transaction.
The development comes almost a year after media reports suggested that the company was in talks with IDFC Alternatives to divest its stake.
It comes at a time when interest level is seeing an upswing for road and highway projects. The sector has gone through a prolonged phase of financial crunch on the back of economic slowdown.
Founded in 2007, TRIL Roads is engaged in the construction of highways and roads. It is a wholly owned subsidiary of Tata Sons Ltd. Other projects being developed by the company include IVRCL Chengapalli Tollways Ltd, Kumarapalayam Tollways Ltd and Salem Tollways Ltd.
Madhucon Group is engaged in diversified business with interest in BOT projects, highways and airports, hotel, irrigation, hydel power, property development and water resources.
(Edited by Joby Puthuparampil Johnson)