Report: Sadbhav Infra to raise INR4bn

Indian roads operator Sadbhav Infrastructure, a wholly-owned subsidiary of listed Sadbhav Engineering, is understood to have entered into an agreement with global investors Norwest Venture Partners and The Xander Group to raise INR4bn. The capital raised will be used for funding existing projects.

Roads and highways operator Sadbhav Infrastructure Projects (SIPL), a 100 percent subsidiary of Sadbhav Engineering – which is listed on the Bombay and National Stock Exchanges – is understood to be raising INR4 billion (€67.5 million; $86.5 million) by entering into an agreement with global investors Norwest Venture Partners (NVP) and The Xander Group, according to local media reports. 

Reports suggest that the capital raised will be used for funding existing road projects and bidding for new road development projects in the national and state highway development programmes. The company could not be reached for comment on the deal.

US-based investment firm NVP made its first investment in India’s infrastructure sector earlier this year as part of a Morgan Stanley Infrastructure Partners-led consortium that invested $425 million in developing an investment portfolio of hydro, thermal and non-conventional generation assets with a capacity of nearly 4,000 megawatts in southern India, according to a press release issued by NVP.

The Xander Group invests in sectors like real estate, hospitality and retail in India and has committed a total of $1.8 billion since 2005, according to media reports.

SIPL has already constructed more than 1,200-kilometres of four-lane highways and at least 785 kilometres is under construction at various stages. The parent company, Sadbhav Engineering, currently holds nine projects with a total cost of INR7.8 billion, which upon completion will be transferred to SIPL.