Ceigall looks to sell five HAM road assets after it’s completion in $540 million deal
Subscribe to enjoy similar stories. New Delhi: Highway developer Ceigall India Ltd is planning to sell its five road projects under the hybridannuity model (HAM) in a deal having an enterprise value of $540 million, two people aware of the development said. Out of the five, work has started on two, while the other three are awaiting clearances.
The company will sell the assets once work on all five is complete, the people cited above said on the condition of anonymity. When contacted, Ceigall India managing director Ramneek Sehgal said the company is constantly evaluating opportunities and takes actions that are in the best interests of the company. He, however, refused to provide details.
Ceigall India has built 1,740 lane km of highways, flyovers, bridges, tunnels, expressways and runways. In October, Mint reported that an alternative investment fund of Neo Asset Management is close to buying Ceigall's stake in an operational four-lane Malout highway built under HAM at an enterprise value of ₹450 crore. Among Ceigall's five projects on the block, work has begun on two—the ₹480 crore (164.4 km) six-laning of Jodhpur Romana (Bathinda)—Mandi Dabwali (Punjab/Haryana Border) section of NH-54; and the ₹540 crore (91.4 km) construction of 4-Lane Greenfield Jalbehra - Shahbad section of NH—152G in Haryana.
Work on three other HAM projects including a ₹861.28 crore project for 271.46 km in Punjab; a ₹1,151 crore project for 198 km and ₹1,500 crore projects for 221.4 km in Jharkhand, are awaiting clearances. Two of them have arranged debt, and equity will be brought in once all approvals are secured. The total cost of the five HAM projects Ceigall is developing is around ₹4,500 crore (including government's annuity), and it
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