Sadbhav Infrastructure Project Ltd, an infrastructure sector player primarily involved in the development of highways and road projects, has agreed to acquire 20 per cent equity stake in Ahmedabad Ring Road Infrastructure Ltd from the joint venture (JV) partner for an undisclosed amount, as per a stock market disclosure.
Sadbhav Infrastructure, a wholly-owned subsidiary of BSE and NSE-listed Sadbhav Engineering Ltd, signed a binding memorandum of understanding (MoU) for acquisition of 20 per cent stake in the Ahmedabad Ring Road Infrastructure from its JV partner Patel Infrastructure Private Limited. Sabhav Infrastructure already owns 80 per cent stake in the road project.
Following the acquisition of 20 per cent stake, which is subject to signing a definitive transaction agreement and approvals from lenders and Ahmedabad Urban Development Authority, the road project will be completely owned by Sadhbav Infrastructure.
The company had formed Ahmedabad Ring Road Infrastructure as a Special Purpose Vehicle in consortium with Patel Infrastructure for strengthening and widening of Ahmedabad Ring Road.
Recently, Sadbhav Engineering 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) for an undisclosed amount. 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).
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.
On Thursday, shares of Sadbhav Engineering were trading at Rs 244.25 per share at 2:55 PM, up 1.60 per cent on the BSE compared with their previous close.
(Edited by Joby Puthuparampil Johnson)