ADAG firm Reliance Infrastructure is in talks to acquire national highway road projects in Tamil Nadu and Karnataka worth Rs 2,000 crore. Hyderabad-based IVRCL Assets and Holdings and other companies may sell road projects awarded to them by the National Highways Authority of India (NHAI). Reliance Infrastructure has mandated Kotak Mahindra Capital and IDFC Capital for the deal. IVRCL may sell a majority stake in its operational projects, Kumarpalayam-Chengapalli and Salem-Kumarpalayam in Tamil Nadu. The company has set aside more than Rs 2,500 crore to buy distressed assets in highways and road assets.
Developers like Reliance Infrastructure and Hindustan Construction Company are looking at acquisitions at a time when aggressive bids for NHAI projects have raised concerns over the profitability of several new projects. Most recent projects have been awarded to developers who have offered to pay a high premium to the government, instead of taking viability gap funding. Reliance Infra has a portfolio of 11 road projects in four metros and seven tier-two cities, worth Rs 12,000 crore and totalling 970 km. The company is looking to double its portfolio to Rs 25,000 crore by the end of 2012.
Company Name | CMP |
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NTPC | 333.30 |
Tata Power | 401.25 |
Power Grid Corp | 315.75 |
Adani Power | 498.45 |
Torrent Power | 1476.80 |
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