Dilip Buildcon Ltd, a Bhopal-based road developer, has announced the sale of 24 road assets of a total project value of ₹10,500 crore to the Chhatwal Group Trust, which runs the Mumbai-based Shrem Group.

The deal, which could emerge as one of the largest in the sector, is estimated at ₹1,600 crore. According to the company, of the 24 special purpose vehicles to be sold, 14 are operational projects, four are under construction, while six are hybrid-annuity model (HAM) projects at different stages of implementation.

The road developer has invested a total of ₹682 crore (both in equity and debt) while ₹841.6 crore is yet to be invested.

In March, Dilip Buildcon had said that Shrem Infraventure, part of the Shrem Group, would hold 49 per cent of the equity share capital in the Tuljapur-Ausa road project while Dilip Buildcon will hold the remaining stake in the SPV. This deal was covered under a larger transactions between the companies.

Rohan Suryavanshi, Head-Strategy & Planning, Dilip Buildcon, said the company had decided to monetise the entire road asset portfolio — the largest annuity portfolio in the country — as it wants to focus on its EPC business rather than owning assets.

“It is not just the largest deal in the sector in terms of value of assets or in terms of equity, but what is significant is the fact that no other buyer has acquired such a large portfolio which also includes projects under constructions,” Suryavanshi told BusinessLine .

He added that the cash inflow into the company as a result of the deal would give it additional strength for expansion and growth.

Dilip Buildcon has registered around 60 per cent growth in revenue to ₹1,664 crore in the first quarter of the current fiscal. Its EBITDA grew by 46 per cent to ₹300 crore. According to Suryavanshi, the company has an order book of around ₹16,000 crore in 13 States which gives the revenue visibility for the next two-three years.

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