Public-listed Sadbhav Engineering Ltd, which is involved in engineering, construction and development of infrastructure projects, has agreed to buy out stakes from its joint venture partner GKC Projects Limited in two special purpose vehicles (SPVs) for an undisclosed amount, as per a stock market disclosure.
Sadbhav Engineering has signed a definitive agreement with GKC Projects to acquire the latter's 40 per cent stake holding in Hyderabad-based Yadgiri Tollway Private Limited (HYTPL) and another 24 per cent stake in Mysore-Bellary Highway Private Ltd (MBHPL).
Following the proposed stake acquisition, Sadbhav Engineering will own 100 per cent stake in HYTPL and 74 per cent stake in MBHPL, subject to approvals from lenders and National Highway Authority of India (NHAI).
On September 9, 2014, the company obtained its board approval to raise funds up to Rs 250 crore (over $41 million) through qualified institutions placement, subject to shareholders’ approval.
Sadbhav Engineering is a construction firm with focus on road, irrigation and mining projects. It is one of the largest BOT (build, operate and transfer) developers in the road sector in India with good project execution skills.
The company operates in four distinct business areas in the infrastructure sector—BOT road projects, cash contract-based road projects, irrigation projects and mining.
Shares of Sadbhav Engineering rose over 6 per cent to Rs 244.60 at 14:20 on the BSE from their previous close in weak Mumbai market.
(Edited by Joby Puthuparampil Johnson)