The Madhucon Group, through its subsidiary Madhucon Projects Limited, has recently announced that it has completed the sale of its majority stake in Madhucon-Agra Jaipur Expressway Limited to Cube Highways and Infrastructure Pte Ltd, a company backed by I Squared Capital (ISQ) and International Finance Corporation (IFC).

More concretely, Madhucon Group has sold its 74% stake in the Madhucon-Agra Jaipur Expressway Limited, a Special Purpose Vehicle (SPV) promoted by Madhucon Projects Limited and SREI Infrastrucuture Limited (7%) to strengthen and widen the existing 57 Kilometers stretch between Bharatpur and Mahw and connects it to the Golden Quadrilateral in the state of Rajasthan.

The road PPP project was awarded by NHAI on a build, operate and transfer (BOT) basis. The project has a concession period of 25 years, which started on October 31, 2005.The road started commercial operation and toll collection in May 2009.

Madhucon and Cube Highways signed the share purchase agreement on October 21, 2015. The transaction agreement has involved the total amount of Rs 248 crore (US$37 million).

In early 2015, TRIL Roads, the infrastructure project unit of Tata Group, and Madhucon Projects Limited announced an agreement by which TRIL pretended to acquire the 74 stake of Madhucon-Agra Jaipur Expressway Limited for an amount of US$39 million, however the transaction was not completed finally.

According to local sources, the Madhucon Group, stated:

“The sale proceeds from the transaction will be used to complete the under construction infrastructure projects of the group. The completion of this transaction demonstrates the ability to successfully optimize the value realization from operational infrastructure assets. The focus of the group continues to be on its core competence in EPC and the upcoming NHAI hybrid model projects, as well as creating liquidity and on reducing the leverage for the benefit of all stakeholders.”