Sadbhav Infrastructure Project Limited to raise funds of upto Rs. 700 crores through NCDs

Sadbhav Infrastructure Project Limited (SIPL or Company) has executed certain Debenture Trust Deeds with the trustee in relation to certain debentures, being Catalyst Trusteeship Limited on 9th February, 2021 to raise upto Rs.700,00,00,000/- (Rupees Seven Hundred Crores only) in various tranches / series on a private placement basis, the details of which are as under:

1. Issuance of up to 5,001 (Five Thousand and One) secured, unrated, unlisted, redeemable, nonconvertible debentures by the Company having face value of ₹10,00,000/- (Rupees Ten Lakhs Only) each, aggregating to ₹500,10,00,000/- (Rupees Five Hundred Crores and Ten Lakhs Only) on a private placement basis in one or more tranches. ("Series A Debentures").

2. Issuance of up to 1,999 (One Thousand Nine Hundred and Ninety Nine) secured, rated, listed, redeemable, non-convertible debentures by the Company having face value of ₹10,00,000/- (Rupees Ten Lakhs Only) each, aggregating to ₹199,90,00,000/- (Rupees One Hundred Ninety Nine Crores and Ninety Lakhs Only) on a private placement basis in one or more tranches. ("Series B Debentures"). These Series B Debentures will be listed on 'Wholesale Debt Market' segment of the BSE Limited.

The Investor consortium led by Allianz Global Investors (AllianzGI) and including AMP Capital, have committed to fund up to Rs. 700,00,00,000/- (Rupees Seven Hundred Crores only) to SIPL. The proposed long term funding is in the form of non-convertible debentures with a tenure of more than four years.

This is part of a larger funding exercise that will help the Company inter alia to repay existing debt and to fund the ongoing portfolio of Hybrid Annuity Model (HAM) road assets of the Company.

Upon completion of the transaction, pursuant to the terms of Debenture Trust Deed, SIPL will complete the allotment of non-convertible debentures to the Investors. The transaction is subject to customary conditions precedent common in transactions of this nature.

Mr. Vasistha C. Patel, Managing Director of the Company said, "The business environment has been quite challenging and we are thankful to the NCD investors for reposing trust and confidence in SIPL despite uncertain times. The investment will infuse sufficient liquidity into the Company and will also provide resilience and necessary financial strength to our Balance Sheet over the long term. Proposed fund raising will help SIPL to repay existing debt and to fund the ongoing portfolio of Hybrid Annuity Model (HAM) road assets of the Company."

Shares of Sadbhav Infrastructure Project Ltd was last trading in BSE at Rs.20.5 as compared to the previous close of Rs. 20.4. The total number of shares traded during the day was 19687 in over 116 trades.

The stock hit an intraday high of Rs. 21.3 and intraday low of 20.5. The net turnover during the day was Rs. 408971.

Source : Equity Bulls

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