The Competition Commission of India (CCI) has approved the acquisition of equity in 10 road infrastructure projects (target SPVs) by Shrem InvIT from Dilip Buildcon Ltd. (DBL) and its associates. The proposed combination involves the acquisition of 100% equity in the road infrastructure projects by Shrem InvIT. It also entails the issue of certain units of Shrem InvIT to Dilip Buildcon and associates as consideration for the acquisition, says the antitrust watchdog.
Shrem InvIT, a trust registered under the Indian Trusts Act, 1882, and with SEBI under InvIT Regulations 2014, has been set up for carrying on the activity of an infrastructure investment trust.
The target SPVs are undertaking road projects in Karnataka, Jharkhand, Andhra Pradesh, Maharashtra, Odisha, Madhya Pradesh and Chhattisgarh.
The names of these projects are DBL Byrapura Challakere Highways Pvt Ltd, DBL Gorhar Khairatunda Highways Pvt Ltd, DBL Anandapuram Anakapalli Highways Pvt Ltd, DBL Bellary Byrapura Highways Pvt Ltd, DBL Sangli Borgaon Highways Pvt Ltd, DBL Chandikhole Bhadrak Highways Pvt Ltd, DBL Bangalore Nidagatta Highways Plt Ltd, DBL Nidagatta Mysore Highways Pvt Ltd, DBL Rewa Sidhi Highways Pvt Ltd, and Pathrapali Kathgora Highways Pvt Ltd.
Dilip Buildcon is engaged in the business of construction, operation and maintenance of roads and highways. It obtains road projects through a government’s competitive bidding process.
As per Dilip Buildcon, the total equity valuation of said 10 projects is expected around ₹2,349 crore against the required equity investment of ₹1,501 crore.
Also, Bangarupalem Gudipala Highways Limited, a wholly-owned subsidiary of Dilip Buildcon, has received a financial closure letter from the National Highways Authority of India (NHAI). The project involves the construction of a 29-km four-lane Bangalore-Chennai Expressway in Andhra Pradesh under Bharatmala on Hybrid Annuity Mode. The total cost of the project is ₹1,060 crore, with an operation period of 15 years and a completion period of 24 months.
Meanwhile, the CCI has also approved the acquisition of a 100% stake in Solenergi Power Private Ltd by Shell Overseas Investments B.V.’s from Actis Solenergi Ltd. The acquirer company, Solenergi Power, incorporated in the Netherlands, is a part of the Shell group. It is a holding company. Shell Plc is the ultimate holding company and directly and indirectly, owns investments in various companies. Shell Plc’s shares are listed on the London Stock Exchange, Euronext Amsterdam and the New York Stock Exchange.
The Shell Group is a global group of energy and petrochemical companies, with 83,000 employees in over 70 countries. The target investment company is incorporated in Mauritius and belongs to the Actis group. It currently has investments in the renewable energy sector in India.