Welspun Enterprises has completely divested its 50% stake in Dewas Bhopal Road Corridor (DBCL) for a total consideration of Rs 184.10 crore as against its fund infusion of Rs 85.40 crore implying a multiple of 2.15x. DBCL also had an outstanding debt of Rs 317 crore at the time of the initial agreement, implying an Enterprise Value of Rs 667.5 crore.
Further, the company is likely to get around Rs 20 crore as deferred consideration, contingent on obtaining approval for extension of concession agreement from MPRDC. This could potentially increase the Enterprise Value to Rs 687.50 crore with resultant consideration for Welspun Enterprises at Rs 204.10 crore.
Welspun Enterprises, formerly Welspun Projects, part of the Welspun Group, is an operating company in the infrastructure business. The company also has investments in Oil & Gas Exploration.