KKR and Sekura amongst firms in fray for Ashoka’s highway belongings

Non-public fairness agency KKR, Edelweiss-owned Sekura, I Squared Capital’s Dice Highways and Shrem InvIT are in a race to accumulate a portfolio of 11 hybrid annuity mannequin (HAM) highway tasks of a subsidiary of Ashoka Buildcon, stated two individuals conscious of the event. “Whereas many HAM belongings are on sale available in the market, they’re small two-three asset portfolios. Ashoka’s portfolio is without doubt one of the largest HAM portfolios accessible and therefore it has seen curiosity from a number of gamers similar to KKR, Edelweiss, Dice in addition to Shrem,” stated one of many individuals.

The portfolio held by Ashoka Concessions is predicted to fetch an enterprise worth of near ₹5,500 crore with an fairness worth of as much as ₹1,300 crore, he stated. EY is advising Ashoka Buildcon on the sale course of.

Of the 11 roads, seven are operational and 4 are underneath building. Ashoka holds 100% stake in all these tasks, unfold throughout the states of Punjab, Jharkhand, Andhra Pradesh, Karnataka, Telangana and Gujarat.

The operational highway tasks are Kharar-Ludhiana, Ranastalam-Anandapuram, Vadodara-Kim, Khairatunda-Barwa Adda, Belgaum-Khanapur, Tumkur-Shivamogga-I, Kandi-Ramsanpalle. As on December 31, 5 of those roads collectively generated annuity income of ₹676 crore, as per an investor presentation by the corporate. The 4 underneath building tasks are Tumkur-Shivamogga-II, III and IV, and Baswantpur Singnodi. Mails despatched to Ashoka Concessions, Sekura, Dice Highways and Shrem InvIT didn’t elicit any responses until the press time. KKR spokesperson declined to remark

The sale of the 11 HAM highway belongings follows different monetisation offers by Ashoka for a number of toll highway tasks.

In December 2021, Ashoka entered into an settlement to promote 5 toll roads housed underneath Ashoka Concessions to KKR for ₹1,337 crore. The transaction is but to be closed. Of the sale proceeds, ₹1,200 crore could be used to offer a whole exit to SBI Macquarie from the Ashoka Concessions platform.