SBI-Macquarie PE to invest $150 mn in road construction company
Macquarie SBI Infrastructure Fund and SBI Macquarie Infrastructure Trust on Monday said they would invest $150 million (Rs 825 crore) in Ashoka Concessions Limited (ACL), a road construction subsidiary of civil constuction firm Ashoka Buildcon.business Updated: Aug 13, 2012 22:12 IST
Macquarie SBI Infrastructure Fund and SBI Macquarie Infrastructure Trust, the private equity funds managed by State Bank of India (SBI) and Macquarie, on Monday, said they would invest $150 million (Rs 825 crore) in Ashoka Concessions Limited (ACL), a road construction subsidiary of civil constuction firm Ashoka Buildcon.
The company in a statement to the BSE on Monday said, “ACL will currently domicile a portfolio of 7 large projects with a project cost of $1.6 billion. It is raising $150 million from private equity (PE) funds for funding the existing portfolio.”
Satish Parekh, managing director, Ashoka group, said, “This (PE placement) will help us strengthen our position as a leading highway developer in India. There are opportunities to be tapped in the Indian road space and now we are well positioned to make the most of it.”
The shares of Ashoka Buldicon on Monday jumped up by 5.49% or Rs 14 to touch Rs 269 after the news was announced.
SBI Macquarie Infrastructure Management CEO Suresh Goyal said “we remainoptimistic on the India infrastructure story of which roadssector is a critical component. This is a long term partnership and together we will look forward to talking this business to greater heights.”
Ernst & Young acted as the exclusive financial advisor to Ashoka. With inputs from agencies