Sadbhav Engg expects net debt to be near zero by year end

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Sadbhav Infra is set to sell the Maharashtra Border Check Post Network (MBCPNL) to Adani Enterprises for a net worth of Rs 1,680 crore. Nitin Patel, executive director of Sadbhav Engineering shared the perspectives.

Sadbhav Infra is set to sell the Maharashtra Border Check Post Network (MBCPNL) to Adani Enterprises for a net worth of Rs 1,680 crore. Nitin Patel, executive director of Sadbhav Engineering shared the perspectives.

“This is an important Special Purpose Vehicle (SPV). The project was developed by the company between 2009 and 2013. There are several checkpoints in the six neighboring states of Maharashtra and the total cost of the project is around Rs 1,520 crore. We decided to monetize the asset at Adani Enterprises. It’s a win-win for both groups, ”he said.

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

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“If all of the proceeds can be used, all the debt can come out of Sadbhav Infra. The idea is to partially deleverage at Sadbhav Infra and also to use the proceeds at Sadbhav Engineering both to put in additional working capital and to focus more on performing the EPC to reduce debt at Sadbhav Engineering level, ”Patel said.

“We are planning to largely reduce around Rs 150 crore at the Sadbhav Infra level and the balance that we will work to use at the Sadbhav Engineering level,” he explained.

“By the 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 publication: STI


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