Welspun Enterprises has entered into a definitive agreement with India Infrastructure Fund-II, an alternate fund sponsored by IDFC. As per this agreement, the company sold 37% equity stake in Dewas Bhopal Corridor (DBCL), a 50% Joint Venture of the company at an enterprise value of Rs 662 crore (including a contingent deferred consideration of Rs 34 crore million and debt of Rs 317 crore). The above transaction has strengthened the company’s financial capabilities by increasing the cash and reducing net debt by nearly Rs 282 crore.
Consequently, the company still owns 13% equity stake in DBCL, which can be transferred within 2 years, subject to approval of Madhya Pradesh Road Development Corporation (MPRDC). Ernst and Young acted as advisor for DBCL.
Welspun Enterprises (WEL), formerly Welspun Projects, part of the Welspun Group, is an operating company as well as a holding company in the business of Infrastructure, Oil & Gas Exploration and Renewable Energy.