Infra in Motion: Dilip Buildcon Fuels Build India Fund with Key Stake Transfer

Image Source: CNBC TV18

Dilip Buildcon Ltd. has concluded a sale transaction of a 24.99% interest in two of its key highway subsidiaries to the Build India Infrastructure Fund, managed by Alpha Alternatives, as a significant move in infrastructure monetization. This is in line with Dilip Buildcon's ongoing pursuit of monetizing the worth of operational assets while bringing wider institutional investment into India's roads and transport infrastructure.

Transaction Overview

Dilip Buildcon sold a 24.99% equity stake in:
Mehgama-Hansdiha Highways Ltd.
Raipur-Visakhapatnam-CG-2 Highways Ltd.
Received total consideration of ₹295.9 million (INR).

Strategic Partnership

The interest was transferred to the Build India Infrastructure Fund, one of Alpha Alternatives.
It recently raised a $450 million (₹3,800 crore) first close on its target of $750 million corpus.
A public Infrastructure Investment Trust (InvIT) is expected to be launched by 2025.

Infrastructure & Asset Management

Dilip Buildcon will also provide operational management on road assets owned by the fund.
The divestment supports long-term cash generation and asset recycling.
Enables public-private partnership for funding infrastructure.

Impact in the Future

Improvement of Dilip Buildcon's balance sheet for executing new projects.
Supports India's national goal of making infrastructure stronger with private capital infusion.
Makes the company a leading player in the InvIT space that is expected to expand exponentially.

Sources: Rediff MoneyWiz Corporate Filing, Economic Times, StartupStars Deal Coverage, VCCircle Investment Report, PMS Bazaar Infrastructure Close Announcement