Ashoka Buildcon unit raises USD 150mn from SBI, Macquarie

With an increased focus on the infrastructure sector, private equity funds managed by State Bank of India and Australia's Macquarie Group will jointly invest USD 150 million in an Ashoka Buildcon subsidiary.

Macquarie SBI Infrastructure Fund and SBI Macquarie Infrastructure Trust, the PE funds managed by India's largest lender and Macquarie, will together invest USD 150 million in the infra firm's subsidiary, Ashoka Concessions Ltd (ACL), which is currently executing seven large-sized road projects.

"These funds will be used mainly to complete the under -construction projects of ACL," SBI Macquarie Infrastructure Fund Chief Executive Suresh Goyal told reporters here today.

With this deal, the two PE fund managers will hold 34% stake in ACL, while 64% will be with the parent company, Ashoka Buildcon. ACL currently has a portfolio of seven projects worth USD 1.6 billion.

"ACL will be an exclusive vehicle which will bid for large projects. This is a long-term partnership and together we will look forward to taking this business to greater heights," he said.

"We are pleased to have the SBI Macquarie joint venture as an investor in our road BOT (build-operate- transfer) business. We are confident that this will help us strengthen our position as a leading highway developer in India," Ashoka Managing Director Satish Parakh said.

He said the company was expecting a good number of NHAI projects in the near future. "There are opportunities to be tapped in the Indian roads space, and now we are well positioned to make the most of it. We are looking at BOT projects which are over Rs 200 crore."

Ashoka Buildcon, a leading highway concessionaire and EPC (engineering, procurement and construction) company, has executed 3,100 lane kms of highways and currently has an unexecuted order-book of USD 1 billion.