Dilip Buildcon Research Report By Axis Direct
| Dilip Buildcon Research Report By Axis Direct | |
| Company: | Dilip Buildcon |
| Brokerage: | Axis Direct |
| Date of report: | September 4, 2017 |
| Type of Report: | Result Update |
| Recommendation: | Buy |
| Upside Potential: | 23% |
| Summary: | Paving the way for creation of EPC behemoth |
| Full Report: | Click here to download the file in pdf format |
| Tags: | Axis Direct, Dilip Buildcon |
| Sale of BOT assets – right step forward Dilip Buildcon (DBL) has signed an agreement with Shrem Group for sale of its entire BOT portfolio (14 operational, 4 under construction projects and 6 Hybrid Annuity Model (HAM) projects) at an equity value of Rs 16 bn and enterprise value of ~Rs 105 bn. DBL has invested (equity and sub-debt) Rs 6.8 bn in operational and under construction assets, while an amount of Rs 8.4 bn is yet to be invested. The transaction values BOT portfolio at ~1.05x book value. The transaction is expected to be completed in tranches, wherein DBL would receive ~Rs 5.5 bn in FY18 and remaining in FY19, which would be utilized in strengthening the balance sheet (reduction of debt). With the monetization of BOT assets, DBL has delivered on its strategy of being a focused EPC player in infrastructure space.” |
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