Neo AIF to acquire stake in Ceigall India Punjab highway project for Rs 450 crore

Neo Infra Income Opportunities Fund (NIIOF) will be invested at approximately $4.5 billion rupees.

Ceigall India is in advanced talks with parent company Neo Asset Management to sell 100% stake in the Malout Expressway project at an enterprise value of $400-450 crore.

Neo Asset Management is the alternative asset management arm of Neo Group and operates the Neo Infra Income Opportunities Fund.

Ceigall India is an infrastructure construction company that has constructed over 1,739.88 lane kilometers of roads, highways, viaducts, flyovers, bridges, bridge railways, tunnels, highways, highways and runways.

four lane project

The road project is a four-lane, 65-km stretch from Malout in Punjab to Sadhuwali in Rajasthan on the hybrid annuity model under the Bharatmala scheme.

“The concession period is 17 years, of which the construction period is two years. The project will be completed on June 6, 2023.” said the first person above.

“Ceigall expects to receive capital gains proceeds $The 100% stake sale will bring in proceeds of Rs 180-200 crore. In addition, term loan liabilities are $As part of the deal, Rs 2,800-300 crore will be transferred to Neo. ” the person added.

The transaction is expected to close in the last quarter of this fiscal year. Neo and Segal both declined to comment.

The Malout Highway project also includes 31 kilometers of slip roads and access roads.

Projects executed under the HAM model have always attracted institutional investors as they offer fixed returns throughout the concession period.

“We are seeing strong interest from institutional investors such as AIF in HAM-based highway projects as this enables investors to lock in good returns over a period of 15 to 20 years. As large-ticket investors seek stable and long-term Returns, this trend is only expected to gain momentum in the coming years,” said an industry expert.

NIIOF is a private pooled Alternative Investment Fund (AIF) that invests in revenue-generating renewable energy and road projects in India.

The fund’s assets under management are estimated to be $2,000 crore to focus on renewable energy and road projects by acquiring equity stakes from promoters at favorable IRR.

Neo asset management is approaching $Advisory and above assets of Rs 35,000 crore (over USD 4 billion) $6,000 crore (approximately $714 million) in alternative assets. In August this year, Neo Group raised $The new round of equity financing was led by Japanese bank MUFG Bank and New York-based Euclidean Capital to raise Rs 400 crore (approximately $47 million).

Peak XV Partners, which invested approximately $35 million in October last year, also participated in this round of financing.