Dilip Buildcon to raise ₹2,000 cr via warrants, InvIT
₹2,000 crore from Naresh Korthari-led alternative assets investor Alpha Alternatives Group through a combination of warrants and InvIT route over a period of 12-18 months, according to the company's second-quarter analyst presentation. As part of the deal, Alpha and its other entities will pick up a 10% stake in Dilip Buildcon via warrants at ₹328.05 per warrant. This will translate into an infusion of ₹530 crore into the company via warrants.
Separately Alpha will also pick up a 26% stake in 18 road assets under the InvIT route. The remaining 74% stake will be held by DBL. Dilip Buildcon expects Alpha to bring in ₹700-800 crore worth of capital through warrants and InvIT during fiscal year 2024 and the remaining ₹1200-1300 crore in FY2025.
"DBL is getting ₹2000 crore capital and 4000 crore worth of invIT units which will translate into cash of ₹400 crore per year. Our idea is seeing the EPC business giving us regular business, taking the invested capital back into the company and setting up a long term revenue stream through our InvIT. As our EPC business keeps growing and PPP projects keep on increasing, we will keep adding more units to this one InvIT," said Rohan Suryavanshi, head of strategy, DBL during the analysts' call on Wednesday.
The fundraising is in line with Dilip Buildcon's overall debt reduction plan that was laid down earlier. It plans to be a zero-net debt company by fiscal year 2025. "We have reduced ₹300 crore of debt from FY23 levels and our own target to reduce ₹800-1000 crore from FY23 to FY24 as stated earlier.
That will take our net debt to ₹1300-1500 crore by end of this financial year. Our target is to make DBL a net debt free company by next financial year," said Suryavanshi. "We have taken a
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