Welspun acquiring infra projects of Essel Group

Infrastructure developer Welspun Enterprises is set to acquire projects from its competitor Essel Group company Mukarba Chowk-Panipat Toll Roads Ltd. under the ‘Harmonious Substitution’ route.
The Welspun Group company will acquire a Build-Operate-Transfer (BOT) project from an Essel Group, through its subsidiary Welspun Infrafacility.

As of date, almost 30% of the Rs 2,122 crore project has been completed. A balance of Rs 1,593 crore is to be incurred to complete the project as per its press release.
Welspun believe that this acquisition will add to its existing road portfolio and help create sustainable value for shareholders, improve the overall returns for the company.

All existing lenders to the project have agreed to continue supporting the project; thus, the project is fully financially tied up. The company expects to complete the project by June 2021.
On Wednesday, the board of directors of Welspun Enterprises approved raising Rs 200 crore via issue of Non Convertible Debentures.
Welspun Enterprises shares gained as much as 2.83% to Rs 50.95 on NSE.

Disclaimer –
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.