Ashoka Buildcon Limited along with its co-shareholder, an investment fund managed by Morgan Stanley India Infrastructure, have signed a Share Purchase Agreement (SPA) with Mahanagar Gas Limited (MGL) for sale of their 100% stake held in Unison Enviro Private Limited (UEPL). The SPA will be subject to customary approvals from Regulatory Authorities.
This stake sale validates ABL's deep project execution capabilities and has enabled value creation for ABL's stakeholders.
Mr. Ashish Kataria, Director of Ashoka Buildcon Limited, said, "Ashoka Buildcon has consistently sought growth opportunities that leverage the company's proven project execution skills. In 2016, we identified gas distribution as one such opportunities. Within a short period of time, we gained domain knowledge, won 3 licenses, commissioned these networks and implemented a number of industry leading innovative solutions. We are happy with the way UEPL has scaled-up. We believe this transaction will help UEPL leverage MGL's strengths to realize its full potential. This successful divestment continues to substantiate ABL's full cycle credentials and efficient use of capital to develop, construct, commission, operate and sale of investments." He also appreciated the contribution of employees who have taken this business to its truest potential. He further told about the fulfillment of commitment of delivering value to the Investors.
Mr. Shyamsundar Gurumoorthy, Managing Director of Morgan Stanley India Infrastructure, said "We had the privilege to partner with Ashoka Buildcon Limited and invest in UEPL in 2019, our first deal from India fund. We are delighted that we could support ABL and the management team to scale-up UEPL from a pre-revenue platform at the time of our investment to one of the fastest-growing sustainable city gas distribution companies in India. We believe UEPL's city gas distribution licenses are attractive with inherent long-term growth potential in its areas of operation. These licenses offer an excellent inorganic growth opportunity and a strategic fit for Mahanagar Gas Limited. This investment is a validation of our thesis to be an early entrant in an emerging infrastructure space, partner with like-minded sponsors and successfully grow businesses".
Mr. Ashu Shinghal, Managing Director of MGL, said, "We are delighted to sign the agreement for acquisition of 100% stake in Unison Enviro Private Limited. There is great potential of integrating resources and derive synergies from this acquisition. MGL, with its deep-domain knowledge, strategies for long-term growth and capable workforce, is well equipped to seize the opportunities that lie ahead of it. MGL is strategically poised to leverage new opportunities in the CGD sector, as it continues to expand its areas of operations while providing high quality services to its customers. The acquisition would help MGL expand its network within and beyond Maharashtra and offer its quality services with safety to a broader customer base, thereby contributing towards long term growth of the organisation."
Shares of Ashoka Buildcon Limited was last trading in BSE at Rs. 76.11 as compared to the previous close of Rs. 74.80. The total number of shares traded during the day was 97526 in over 1185 trades.
The stock hit an intraday high of Rs. 76.69 and intraday low of 74.71. The net turnover during the day was Rs. 7356695.00.