Welspun Enterprises sells 37 per cent stake in road project to IDFC fund

Welspun Enterprises Limited has entered into a definitive agreement with India Infrastructure Fund II, which is an alternate fund sponsored by IDFC. As per the agreement, the company has sold 37 per cent equity stake in Dewas Bhopal Corridor Private Limited (DBCL), a 50 per cent JV of Welspun, at an enterprise value of Rs 6.62 billion. The divestment has reduced the net debt of Welspun by Rs 2.82 billion. However, the company still owns 13 per cent equity stake in DBCL which can be transferred within two years subject to approval from the Madhya Pradesh Road Development Corporation. Ernst & Young acted as an adviser for DBCL.

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