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.
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