Ashoka Buildcon Sells 11 SPVs for ₹2,324 Crore: Strategic Move to Streamline Operations

Ashoka Buildcon Limited, along with its subsidiary Ashoka Concessions, has entered into an agreement to sell 11 Special Purpose Vehicles (SPVs). The sale, valued at approximately ₹2,324 crore, is being executed with Epic Concesiones 2 Private Limited and schemes managed by Infrastructure Yield Trust. The transaction involves the sale of the entire share capital, repayment of shareholder loans, and transfer of management control in the SPVs.

List of SPVs Sold:

1. Ashoka Kharar Ludhiana Road Limited
2. Ashoka Khairatunda Barwa Adda Road Limited
3. Ashoka Ranastalam Anandapuram Road Limited
4. Ashoka Ankleshwar Manubar Expressway Private Limited
5. Ashoka Mallasandra Karadi Road Private Limited
6. Ashoka Bettadahalli Shivamogga Road Private Limited
7. Ashoka Karadi Banwara Road Private Limited
8. Ashoka Belgaum Khanapur Road Private Limited
9. Ashoka Banwara Bettadahalli Road Private Limited
10. Ashoka Kandi Ramsanpalle Road Private Limited
11. Ashoka Baswantpur Singnodi Road Private Limited

New NHAI Project Adds Growth Prospects

In addition to the asset sale, Ashoka Buildcon recently received a letter of award from the National Highways Authority of India (NHAI) for a ₹1,391 crore project. The contract involves constructing a four-lane economic corridor from Bowaichandi to Guskara-Katwa Road (NH-116A) in West Bengal. The project, under the hybrid annuity model, has a completion timeline of 910 days, including the monsoon period.

Financial Performance in Q2FY25

Ashoka Buildcon posted robust financial results for Q2FY25, showcasing significant growth:

• Net Profit: A 334.27% YoY increase to ₹462.5 crore, compared to ₹106.5 crore in Q2FY24.
• Revenue: Rose by 15.5% to ₹2,489 crore, up from ₹2,154.3 crore in the previous year.
• EBITDA: Increased by 65.8% to ₹905.3 crore, with EBITDA margins improving to 36.4% from 25.3% in FY24.

Share Performance

Despite the strategic announcements, Ashoka Buildcon’s shares were trading 1% lower at 10:00 AM on December 31, 2024. However, the stock has demonstrated strong growth, more than doubling in calendar year 2024. 

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