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Ashoka Buildcon offloads 16% to IDFC for Rs 700 cr
| Deal values the company around Rs 4,500 crore. |
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| In one of the major private equity deals in the country, infrastructure developer Ashoka Buildcon has offloaded 15.62 per cent stake to IDFC’s private equity fund for around Rs 700 crore. |
| The move is of significance, as apart from being one of the major pre-initial public offerings (IPO) deals, this values the unlisted company around Rs 4,500 crore. |
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| The promoters of Ashoka Buildcon has offloaded 15.62 per cent stake of the company’s equity capital, amounting to around 72 lakh shares, to IDFC Infrastructure Fund II. |
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| The deal was sealed at Rs 980 per equity share, sources close to the development said. |
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| Pursuant to the stake acquisition, IDFC PE Fund’s stake rose to 18.18 per cent from the earlier 2.56 per cent it had bought in the Nashik-based infrastructure major. |
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| The fund will nominate a director on the Ashoka Buildcon’s board and both the companies will set up a project committee to jointly bid for other infrastructure opportunities. |
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| When contacted executives of both the companies declined to comment on the development. |
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| Ashoka Buildcon, which had filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an IPO, is currently under the mandatory silent period. |
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| Under the deal, IDFC PE Fund II has also received right of first refusal and tag-along rights. The fund was also looking at reducing its stake to 13.27 per cent during the IPO, which, however, would be decided only at a later stage, sources said. |
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| Ashoka Buildcon was planning offload 8,100,000 equity shares of Rs 10 each. |
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| The price was to be decided through a book-building process, while the company was looking at using the proceeds for its expansion plans. The company is engaged in toll-based BOT projects in Maharashtra, Madhya Pradesh, Chhattisgarh, Rajasthan, Gujarat, Goa, Delhi and Tamil Nadu. |
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| IDFC-SSKI, Enam Securities and Kotak Mahindra Capital are the book running lead managers for the issue. |
Source: Business Standard
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