Edelweiss Infrastructure Yield Plus (Yield+) has lately bought two annuity road projects from the Hyderabad-headquartered company, Navayuga Group.
The two acquired projects are the Assam-based Navayuga Dhola Infra Projects Ltd and the Arunachal Pradesh-based Navayuga Dibang Infra Projects Pvt. Ltd, VC Circle reported citing Edelweiss' official statement.
"The acquisition will help its portfolio company with its objective of becoming one of the countrys leading investors and asset owners in the roads sector," Edelweiss said in an interview with the cited media agency.
This acquisition has been made from Navayuga Road Projects Pvt. Ltd along with its portfolio company, Sekura Roads Ltd (SRL).
"Acquiring operating infrastructure assets provide impetus to the revival of the sector by helping construction companies to release capital and de-lever," Hemant Daga, Deputy Chief Executive Officer at Edelweiss Global Investment Advisory, told the cited media agency.
SRL is essentially a road and highway infrastructure platform. It concentrates on buying the operating road assets.
The acquisition of the two projects from Navayuga will help its portfolio company with its objective of becoming one of the country's leading investors and asset owners in the roads sector, Edelweiss said in its official statement.
In road projects operated on the annuity model, a special purpose vehicle constructs the asset and receives fixed payments from the National Highways Authority of India or state government authorities throughout a specified concession period.
"The infrastructure and engineering outfit was looking to de-leverage its balance sheet. This transaction will significantly ease out the debt position of the group and help free up cash," Sachin Bhansali, Chief Financial Officer at Navayuga Group told the media agency.