Ashoka Buildcon , a prominent infrastructure development company, has successfully completed the sale of its entire stake in five Special Purpose Vehicles (SPVs) for a total consideration of Rs 1,146.00 crores. The transaction marks a significant milestone in the company's strategic divestment plan.

Transaction Details

The sale involved Ashoka Buildcon and its material subsidiary, Ashoka Concessions Limited (ACL), divesting their 100% stake in five road project SPVs to Epic Concesiones 2 Private Limited and other entities. The buyers are schemes of Infrastructure Yield Trust managed by EAAA India Alternatives Limited, with no relation to Ashoka's promoter group.

The five SPVs included in the sale are:

1. Ashoka Kharar Ludhiana Road Limited (Punjab)
2. Ashoka Khairatunda Barwa Adda Road Limited (Jharkhand)
3. Ashoka Ranastalam Anandapuram Road Limited (Andhra Pradesh)
4. Ashoka Ankleshwar Manubar Expressway Private Limited (Gujarat)
5. Ashoka Kandi Ramsanpalle Road Private Limited (Telangana)

Financial Impact

The combined turnover of the sold SPVs amounted to Rs 409.27 crores, representing 4.08% of Ashoka Buildcon's total turnover during the last financial year. Here's a breakdown of the individual SPVs' contributions:

Future Transactions

Ashoka Buildcon has indicated that the sale of six additional SPVs is pending, subject to the completion of certain conditions precedent and other terms and conditions in accordance with their respective transaction documents. These SPVs include:

1. Ashoka Mallasandra Karadi Road Private Limited
2. Ashoka Bettadahalli Shivamogga Road Private Limited
3. Ashoka Karadi Banwara Road Private Limited
4. Ashoka Belgaum Khanapur Road Private Limited
5. Ashoka Banwara Bettadahalli Road Private Limited
6. Ashoka Baswantpur Singnodi Road Private Limited

Market Implications

This transaction represents a significant move for Ashoka Buildcon, potentially allowing the company to streamline its portfolio and focus on core operations. The sale of these road project SPVs may provide the company with additional capital for future investments or debt reduction.

Investors and market analysts will likely be watching closely to see how Ashoka Buildcon utilizes the proceeds from this sale and whether the company plans to divest more assets in the near future. The completion of this transaction may also signal increased investor interest in India's infrastructure sector, particularly in operational road assets.

As the infrastructure sector continues to evolve, such strategic divestments could become more common, allowing companies to optimize their portfolios and redeploy capital into new growth opportunities.

Ashoka Buildcon Limited (ABL) has announced the mutual foreclosure of a significant EPC (Engineering, Procurement, and Construction) project in Ivory Coast, originally valued at €18.50 million. The project, which involved the construction of 100 drinking water wells and the supply and installation of drinking water supply units in 35 villages, has been terminated by mutual agreement with the main contractor, Serneke International Limited of Sweden.

Project Details and Closure

The project closure was formalized through a final agreement executed on September 19, 2025. According to the company's filing with the stock exchanges, the decision to foreclose the project was reached after considering the terms and conditions of the contract and the progress made to date.

Reasons for Termination

Several factors contributed to the project's foreclosure:

• Overall delays in granting necessary approvals
• Issues with land availability for work
• Delays in obtaining approvals for drawings and designs

Financial Impact

Ashoka Buildcon has assured its stakeholders that the foreclosure will not have any negative financial impact on the company. The settlement between ABL and Serneke International Limited has been concluded with no further obligations on either party.

Management Statement

Manoj A. Kulkarni, Company Secretary of Ashoka Buildcon Limited, stated in the regulatory filing:

"The Company and M/s Serneke International Limited have mutually decided to foreclose the said Project, after considering the terms & conditions of the Contract and progress of the Project. The parties have executed final closure of the Contract agreement on September 19, 2025 and settled the short closure of the contract with no further obligations on either parties."

This development comes as part of Ashoka Buildcon's ongoing project management and strategic decision-making processes. The company's assurance of no negative financial impact suggests a prudent approach to managing its project portfolio and mitigating potential risks associated with delayed or challenging projects.