Dilip Buildcon and its subsidiary to transfer 10 HAM projects to Shrem InvIT

Dilip Buildcon Limited (the "Company" or "DBL") along with its wholly owned subsidiary "DBL Infra Assets Pvt Limited" ("DIAPL") have entered into definitive Agreement(s) dated March 03, 2022 with "Shrem Financial Private Limited" acting in its capacity as investment manager of Shrem InvIT (an infrastructure investment trust, registered with the Securities and Exchange Board of India under the SEBI InvIT Regulations) for sale of 10070 Equity (Equity Share Capital and Promoter's Unsecured Loan) held by DBL and DIAPL along with their Affiliates in a portfolio of ten Hybrid Annuity Model ("HAM") projects comprising of three completed and seven nearing completion projects.

Equity transfer to Shrem InvIT shall be completed in a progressive manner after the completion of the projects, subject to receipt of approvals from the respective project lenders and National Highways Authority of India.

The tolal equity valuation of said ten projects is expected around Rs. 2349 cr. on required Equity of ~Rs l50l cr. Besides this, there shall be reduction in consolidaled debt of the Company by Rs. 4218 crores upon consummation of the transaction.

The transaction is envisaged to be completed in two stages for each of the projects, wherein the first stage would be completed for transfer of 49% equity and repayment of outstanding Promoter's Unsecured Loan, after the Commercial Operation Date (the "COD") of the proiects and the second stage to be completed for transfer of remaining 5l% equity, after expiry of mandatory lock-in period as per the provisions of the Concession Agreement of the respective projects. However, for the completed projects where aforesaid mandatory lock-in pcriod has expired, Equity transfer for such projects would be done under a single tranche. Total consideration as above may undergo some changes on account of prevailing Bank Rate, outstanding actual debt, inflation adjusted balance completion cost etc. for each of the projects on their transfer date.

The 10 projects are DBL Byrapura Challakere Highways Pvt Ltd, DBL Gorhar Khairatunda Highways Pvt Ltd, DBL Anandapuram Anakapalli Highways Pvt Ltd, DBL Bellary Byrapura Highways Pvt Ltd, DBL Sangli Borgaon Highways Pvt Ltd, DBL Chandikhole Bhadrak Highways Pvt Ltd, DBL Bangalore Nidagatta Highways Pvt Ltd, DBL Nidagatta Mysore Highways Pvt Ltd, DBL Rewa Sidhi Highways Pvt Ltd and Pathrapali Kathgora Highways Pvt Ltd.

Shares of Dilip Buildcon Limited was last trading in BSE at Rs. 257.45 as compared to the previous close of Rs. 266.05. The total number of shares traded during the day was 244527 in over 1486 trades.

The stock hit an intraday high of Rs. 265.00 and intraday low of 255.00. The net turnover during the day was Rs. 63732809.00.

Source : Equity Bulls

Keywords

DilipBuildcon INE917M01012 DBL ShremInvIT 10HAMProjects