Welspun Enterprises Ltd has sold a 37% stake in the Dewas-Bhopal road PPP project, in India, to the India Infrastructure Fund II, a fund managed by IDFC Alternatives for INR 6,620 million (around US$107.8 million), including debt.

The deal value includes debt of INR3,170 million (US$51.63 million) and a contingent deferred consideration of INR34 million (US$5.53 million).

Welspun Enterprises held a 50% stake in the 142.6km Dewas-Bhopal Corridor Pvt. Ltd (DBCL), the special purpose vehicle operating the project, while the balance is held by Chetak Enterprises Ltd, a highways developer. After the current sale, Welspun Enterprises will now hold 13% in the project and can transfer the same to the IDFC infrastructure fund II within two years, subject to the approval of the Madhya Pradesh Road Development Corp. Ltd, the company said in a BSE filing on Wednesday.

The four-lane project was completed in April 2010 at a cost of INR6,300 million (US$102 million). It is one of the largest of the six build, operate and transfer (BOT) projects in Welpsun Enterprises’s portfolio. The company operates 500km of completed BOT road projects in India

EY acted as advisor to the seller in the deal.

Earlier this year, the government made it easier for BOT road developers to divest their holdings in operational projects, which led to a pickup in deals in the roads sector. 

In 2014, the Welspun Group decided to merge three of its units to simplify its corporate structure and leverage the strengths of a combined balance sheet. The new merged entity, called Welspun Projects, was subsequently renamed Welspun Enterprises.