Sadbhav Infra is all set to sell Maharashtra Border Check Post Network (MBCPNL) to Adani Enterprises for equity value of Rs 1,680 crore. Nitin Patel, Executive Director of Sadbhav Engineering shared the outlook.

“This is a significant special purpose vehicle (SPV). The project has been developed by the company between 2009 and 2013. There are multiple check posts across the six adjoining states of the Maharashtra and the total project cost is around Rs 1,520 crore. We have decided to monetise the asset to Adani Enterprises. It is a win-win to both the groups,” he said.

The company's outstanding debt is Rs 550 crore and with Rs 1,680 crore of enterprise value, the SPV debt is around Rs 1,130 crore.

ALSO READ:

Sundaram MF's Sunil Subramaniam: Small cap gains would be re-deployed into large caps

"If entire proceeds can be utilised, all the debt can go out of Sadbhav Infra. Idea is to part deleverage at Sadbhav Infra and also to use the proceeds at Sadbhav Engineering so long as to put the incremental working capital as well as focus more on the EPC execution in order to reduce the debt at Sadbhav Engineering level,” said Patel.

“Largely around Rs 150 crore we are planning to reduce at Sadbhav Infra level and the balance we will work out to use at Sadbhav Engineering level,” he shared.

“By end of March 2022, our net debt will be almost zero,” he said.

For the full interview, watch the accompanying video.

(Edited by : Abhishek Jha)

First Published:Aug 17, 2021 4:32 PM IST