Nandi Infrastructure Corridor Enterprise (NICE), an Indian road operator and subsidiary of Bharat Forge (BF) Utilities, is planning to sell a 10 percent stake in Phase I of the 164-kilometre tollway between Bangalore and Mysore, in southern India, to a private equity fund managed by JP Morgan, media reports suggest.
Reports also suggest the term sheet for the stake sale is set to be signed but an announcement is expected in a couple of weeks.
The Bangalore-Mysore Infrastructure Corridor (BMIC) is estimated to be worth between INR12 billion (€200 million; $257 million) and INR15 billion. The capital for the project was raised with the help of Infrastructure Development Finance Company.
JP Morgan’s private equity fund is expected to buy the 10 percent stake in Phase I of the project for INR5 billion according to reports. Company officials from BF Utilities declined to comment.
The BMIC project has three phases with a concession period of 40 years, including a construction period of 10 years.