Hindustan Construction Company (HCC) on Wednesday said it has completed sale of Baharampore-Farakka Highways Ltd for Rs 1,323 crore to Cube Highways and Infrastructure V Pte Ltd. HCC in a statement said the group is to receive a total of Rs 941 crore which includes upfront amount of Rs 677 crore and Rs 264 crore payable by the third quarter of 2023-24 in two tranches, contingent on traffic projections.
Additionally, as part of the agreement with Cube, HCC will be entitled to a revenue share from Baharampore-Farakka Highways Ltd (BFHL) over the entire concession period, which is material in nature, the statement added. HCC Vice Chairman Arjun Dhawan said the company's concessions portfolio has been a value generator for the group and this asset sale underscores the material liquidity contribution toward its operations and growth.
Cyril Amarchand Mangaldas and Edelweiss Financial Services Ltd were the legal and financial advisors for this transaction, respectively. BFHL is a special purpose vehicle of HCC Concessions Ltd. It was incorporated on March 11, 2010 for design, build, finance, operate & transfer (DBFOT) toll of the 4-lane highway between Baharampore and Farakka section of NH-12 in West Bengal under National Highway Development Project (NHDP) Phase III.
State-owned NHAI has granted concession period of 25 years (extending to 30 years) to the company and BFHL commenced commercial (toll) operations on May 14, 2014. Cube is a Singapore-based company investing in road and highway projects, along with select other infrastructure sectors in India.