Ashoka Buildcon Limited's wholly-owned subsidiary, Ashoka Infraways Limited (AIWL), has been selected as the successful resolution applicant for Shree Sainath Land & Development India Private Limited (SSLD), a real estate developer currently undergoing the Corporate Insolvency Resolution Process (CIRP).

Key Acquisition Details

The Committee of Creditors (CoC) of SSLD has approved AIWL's resolution plan, which includes the following terms:

Regulatory Approvals and Next Steps

The acquisition is subject to several regulatory steps:

1. The Resolution Professional has issued a Letter of Intent to AIWL.
2. The transaction requires approval from the National Company Law Tribunal (NCLT), Mumbai Bench.
3. Additional approvals may be needed from other regulatory authorities, courts, or tribunals under applicable laws.

Impact on Ashoka Buildcon and AIWL

This acquisition aligns with AIWL's core business as a real estate developer. Upon implementation of the resolution plan, AIWL will gain full ownership of SSLD and its ongoing real estate project.

Financial Implications

While detailed financials for SSLD are not available due to the CIRP process, the most recent data from FY 2022-23 shows:

• Net worth: ₹2.55 crore
• Revenue from operations: ₹21.61 lakh
• Project Work in Progress: ₹160.68 crore
• Creditors: ₹163.55 crore

Disclosure and Compliance

Ashoka Buildcon Limited has made this disclosure in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. The company has also noted that the trading window for Designated Persons and their immediate relatives is closed from October 1, 2025, until 48 hours after the declaration of financial results for the quarter ended September 30, 2025.

This strategic move by Ashoka Infraways to acquire Shree Sainath Land & Development showcases the company's commitment to expanding its real estate portfolio. The acquisition, once approved by the NCLT, may potentially strengthen AIWL's position in the real estate sector and provide a resolution for SSLD's ongoing project and its stakeholders.

Ashoka Buildcon Limited , a prominent player in India's infrastructure sector, has made a significant move by acquiring a portion of investor stake in its subsidiary, Ashoka Concessions Limited (ACL). This strategic acquisition, valued at ₹882.25 crore, marks a crucial step in the company's efforts to consolidate its holdings and streamline operations in the road infrastructure segment.

Key Details of the Acquisition

Transaction Background

This acquisition is part of a larger agreement outlined in a Securities Purchase Agreement (SPA) dated October 30, 2024. The SPA involves Ashoka Buildcon, its subsidiaries (including Viva Highways Limited and Jaora-Nayagaon Toll Road Company Private Limited), and the aforementioned investors. The ultimate goal is to provide a full exit to these investors from ACL and JTCL.

Extended Timeline

An important development in this transaction is the extension of the deadline. The parties have mutually agreed to extend the Long Stop Date to October 31, 2025, or a later date as may be agreed upon. This extension is necessitated by the ongoing process to acquire the remaining Compulsorily Convertible Debentures (CCDs) from investors, which is subject to the monetization of project assets.

Strategic Implications

1. Consolidation of Holdings: This move strengthens Ashoka Buildcon's position in ACL, potentially leading to more efficient decision-making and operational control.
2. Infrastructure Focus: The acquisition aligns with Ashoka Buildcon's status as a pioneer in road and power sector infrastructure development.
3. Future Prospects: The consolidation is expected to enhance ACL's ability to bid for new projects, potentially expanding its project portfolio.

Financial Context

ACL's financial performance provides context to this acquisition:

Note: All figures in ₹ Crore

This data indicates a steady growth in ACL's financial position over the past three years, underlining the strategic value of this acquisition for Ashoka Buildcon.

The transaction, while significant, is still in progress. Ashoka Buildcon is set to acquire the remaining CCDs and equity shares of ACL from the investors, subject to compliance with conditions precedent under the SPA and the monetization of project assets. This phased approach to acquisition suggests a carefully planned strategy to fully integrate ACL into Ashoka Buildcon's operational structure.

As the infrastructure sector continues to be a key focus area for India's economic growth, moves like this by established players such as Ashoka Buildcon are likely to shape the landscape of road infrastructure development in the country.