Edelweiss Infrastructure Yield Plus, an alternative investment fund managed by Edelweiss Alternative Asset Advisors Ltd. (EAAA), along with its portfolio company Sekura Roads Ltd, has acquired two annuity road assets from the Navyuga group. The deal size is at $140 million on an enterprise valuation basis.
The two road assets are Navayuga Dhola Infra Projects Limited (in Assam) and Navayuga Dibang Infra Projects Private Limited (in Arunachal Pradesh). These assets have been acquired from Navayuga Road Projects Private Ltd, a subsidiary of Navayuga Engineering Company Ltd. Sekura Roads is the road and highway infrastructure platform of the fund, focused on acquiring operating road assets and this is its first acquisition.
Last year, Subhash Chandra-led Essel group sold two transmission assets owned by Essel Infraprojects, Darbhanga-Motihari Transmission Ltd and NRSS XXXI (B) Transmission Ltd, to Sekura Energy, operated by the same fund.
EAAA has assets under management of over ₹28,000 crore. “We are happy to see the acquisition of these high-quality road assets to the Sekura Roads portfolio. This is in line with our strategy of investing in Infrastructure assets which can deliver predictable long-term yield to our investors. We now have a healthy portfolio of operating transmission and operating annuity road assets," said Subahoo Chordia, Head of Edelweiss Infrastructure Yield Plus, in a press statement.
Sachin Bhansali, CFO, Navayuga group said the transaction will help the company de-leverage its balance sheet by freeing up cash.
The Dhola and Dibang roads are of strategic importance because they ensure seamless all-weather connectivity between North East and the rest of India. The Dhola bridge is the country’s longest river bridge, inaugurated by Prime Minister Narendra Modi in 2018, has opened an economic corridor to the states of Assam and Arunachal Pradesh.