Welspun Enterprises to buy toll road project from Essel Group

Welspun Enterprises, part of US$ 2.7 billion Welspun Group, announced on Thursday that it is planning to acquire a build-operate-transfer (BOT) project from Essel group company namely, Mukarba Chowk-Panipat Toll Roads Limited, subject to final approval by National Highways Authority of India (NHAI).

This acquisition is being done by way of harmonious substitution which was recommended by the project lenders and subsequently, approved by NHAI. As on date, MCPTRL had completed around 31 per cent of the 71.1 km long Mukarba Chowk-Panipat Highway (NH-44) project.

The original total project cost was estimated to be Rs 2,122 crore, out of which, Rs 1,593 crore is the balance to be incurred in order to complete the project. All existing lenders to the project have agreed to continue supporting the project; thus, it is fully-financially tied-up. The company expects to complete the project by June 2021.

Commenting on these developments, B K Goenka, Chairman of Welspun Group said that the company believes the addition to its existing road portfolio will create sustainable value for the shareholders and thus, improve the overall returns of the company.

Welspun Enterprises Limited is engaged in the business of infrastructure, trading, oil and gas exploration activities and corporate support to various infrastructure special purpose vehicles (SPV).

At 12.30 pm on Monday, the stock of the company was trading at Rs 50.15, up by 2.35 per cent or Rs 1.15 per share. The 52-week high is Rs 142.35 and the 52-week low is Rs 33.35 on BSE.