New Delhi: Infrastructure firm Welspun Enterprises Ltd (WEL) on Tuesday announced acquisition of 49% stake in two road projects of National Highways Authority of India (NHAI) from MBL Group for Rs23 crore.
The company also said that its board has approved the proposal of its subsidiary—Welspun Financial Services Ltd (WFSL)—to apply to Reserve Bank of India (RBI) for NBFC licence.
“WEL has agreed to acquire 49% stake in two NHAI Hybrid Annuity Model (HAM) projects from MBL Group, subject to necessary approvals and statutory compliances. WEL will be the sponsor to these two projects, thus expanding its HAM project portfolio to three projects," WEL said in a BSE filing.
The two projects are for four laning of Chutmalpur- Ganeshpur section of NH-72A & Roorkee-Chutmalpur-Gagalheri section of NH-73 and Gagalheri-Saharanpur-Yamunanagar (UP/Haryana Border) section of NH-73.
“The consideration for the stake purchase is Rs23 crore. The company has the option to acquire the remaining 51% stake in these projects as and when the regulator (NHAI) permits. The consideration for the purchase of the remaining stake is fixed at Rs24.5 crore," it added. Bid project cost for the two projects is Rs2,120 crore.
Moreover, the Board of Directors of WEL has approved the proposal of subsidiary WFSL to apply to RBI for NBFC licence. WEL will be holding 60% stake in the subsidiary. The remaining 40% will be held by the Welspun promoter group, it added.
Welspun Enterprises said its Board has given in-principle approval for maximum investment of up to Rs350 crore in the venture, from the company’s cash reserve. Shares of Welspun Enterprises were trading 0.67% lower at Rs140.05 on BSE.