Nagpur-based SMS Infrastructure is about to sell a 51% stake in SMS Shivnath Infrastructure (SMSSIL), the special purpose vehicle that manages a bypass to the city of Durg in Chhattisgarh, India.

The project, which was one of the first road projects awarded on the build, operate and transfer (BOT) basis by National Highways Authority of India (NHAI), is to be sold to IDFC Alternatives.

With this transaction SMS Shivnath Infrastructure (SMSSIL) would be entirely managed by IDFC Alternatives who already acquired a 48.4% stake in October 2007 on the project.

SMSSIL owns, operates and maintains an 18.4-kilometer four-lane road in National Highway 6. The concession was awarded by NHAI in 1997 is valid until 2031.

According to sources, the 51% stake of SMSSIL special purpose vehicle is valued at about US$15 million. The initial cost of the project was US$37 million.

The widening of the project from two-lanes to four which has been completed in the current fiscal year has added an 11% overall traffic load, registering a 28% increase in its net profit to US$2.5 million in the fiscal year 2014-2015.

Anand Sancheti, managing director of SMS Limited Nagpur, said:

“We had sold a partial stake to IDFC in 2007, as complete exit from the project was not allowed then. Now, with ministry of roads permitting road developers to divest 100% equity in road projects, we are planning to exit the project.”