Ashoka Buildcon To Raise Upto $150Mn For Road Projects

October 18, 2011

Ashoka Buildcon is selling stake in it’s newly formed road development subsidiary to raise upto $150Mn.

The company has formed a holding company for eight of its road projects, which are together worth around Rs 6,000 crore. The holding company currently includes six projects of National Highways   authority of India (NHAI) that the company is executing on build-own-operate basis, and two state road projects.

Ernst & Young is advising Ashoka Buildcon on the deal.

Given a typical 75:25 debt equity funding structure for highway projects, it will need Rs1500Cr as equity for the holding company.

Nashik based Ashoka Buildcon mainly constructs and operates roads and bridges on a BOT basis. It also undertakes EPC Contracts to construct distribution transformers and electricity substations.

Ashoka Buildcon On BSE

According to it’s website, it currently has a portfolio of 23 BOT road projects totalling approximately 3,498.35 kilometres of lanes in Maharashtra, Madhya Pradesh, Chhattisgarh, Karnataka and Orissa, of which 17 are in operation and six are under construction.

GMR Infrastructure is also planning to raise upto Rs960Cr for it’s road projects. It recently won a road project involving six-lane conversion of the existing Kishangarh-Ahmedabad highway.


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