Reliance Infrastructure’s (RInfra) sale of Delhi Agra (DA) toll road to Cube Highways and Infrastructure III will be close by the end of August 2019. Reliance Infrastructure had signed a binding Share Purchase Agreement with Cube Highways for its 100% stake in DA toll road.
Reliance Infrastructure will receive Enterprise Value of Rs 3,600 crore including equity of up to Rs 1,700 crore. Reliance Infrastructure will utilise 100% of proceeds only for debt reduction. With this single transaction of DA toll road, debt of Reliance Infrastructure will reduce by over 25% to less than Rs 5,000 crore
Reliance Infrastructure has already applied for Commercial Operations Date (COD) to National Highways Authority of India (NHAI) for the project. DA toll road collection period is until 2038 i.e. further 19 years to go.
RInfra is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as Power, Roads and Metro Rail in the Infrastructure space and the Defence sector.
