State Bank of India to jointly invest $150 mn in Ashoka Buildcon arm

August 21, 2012

State Bank of India’s (SBI) private equity funds with Australia’s Macquarie Group will jointly invest $150 million in Ashoka Buildcon’s subsidiary – Ashoka Concessions Ltd.

Shares of Ashoka Buildcon surged as much as 9.56 per cent in morning trade on the Bombay Stock Exchange and touched an early high of Rs 279.40. It was later trading at Rs 272, higher by 6.67 per cent at 11.53 am on BSE.

“Macquarie SBI Infrastructure Fund and SBI Macquarie Infrastructure Trust – which are PE funds managed by SBI and Macquarie – will together invest $150 million in Ashoka Concessions,” a statement said.

Commenting on the development SBI Macquarie Infrastructure Management CEO Suresh Goyal said: “We remain optimistic on the India infrastructure story of which roads sector is a critical component. This is a long term partnership and together we will look forward to talking this business to greater heights.”

Infrastructure firm Ashoka Buildcon has an unexecuted orderbook of around $1 billion and currently has a portfolio of 25 BOT road projects.

It had witnessed the first private equity placement from IDFC Private Equity in 2006.

“We are pleased to have the SBI Macquarie joint venture as an investor in our road BOT business. We are confident that this will help us strengthen our position as a leading highway developer in India,” Ashoka Managing Director Satish Parakh said.

Ernst & Young acted as the exclusive financial advisor to Ashoka for this fund raising exercise.


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