Ramky infra sells NAM Expressway to Cube Highways for Rs 1,669 Crore

The Ramky Group, which last fortnight sold a controlling stake in a group company to global private-equity major KKR in a landmark deal, has agreed to sell it's access-controlled road asset NAM Expressway in favour of the Singapore-based toll roads operator Cube Highways for Rs 1,669 crore.

The Hyderabad-headquartered infrastructure firm has been seeking to sell some of it's road assets, with the group following up on the $530-million KKR investment in Ramky Enviro for a 60% stake.

Ramky Infratech has on Friday announced signing a share purchase agreement with Cube Highways, formed by the International Finance Corporation (IFC) and I Squared Capital.


The sale proceeds will enable Ramky Infratech to retire a debt of Rs 1,529 crore at the consolidated level.

“The company’s decision to sell road assets is part of its strategy to divest stakes in BOT (Build, Operate and Transfer) assets for generation of cash flows,” a person close to the transaction told ET last week, adding that the sale proceeds would help the company retire debt to nearly zero level from around Rs 3,800 crore now and to bring down interest outgo.

Ramky Infratech for the fiscal to March 2018, incurred finance costs (interest outgo) of Rs 368.88 crore and reported a net profit of Rs 33.26 crore on a consolidated revenue of Rs 2,103 crore.

The company is also in advanced talks with few global investors to sell Srinagar Banihal Expressway to further retire the debt.

As a step toward divesting the BOT road assets, Ramky Infratech recently swapped its equity stakes in two road projects with IL&FS Transportation Networks Ltd (ITNL). Ramky sold 50% of its stake in Jorabat Shillong Expressway in favour of ITNL and bought 50% stake held by ITNL in NAM Expressway, making it its fully owned subsidiary.