Government-owned IFCI seems to be on a drive to liquidate non-core investments. After deciding to reduce its holding in National Stock Exchange (NSE) and sell its broking unit, it now plans to put on the block its 26 per cent equity stake in Jaora Nayagaon Toll Road Company Private Ltd (JTCL), a special purpose vehicle for a Rs 900-crore toll road project in Madhya Pradesh.
IFCI Managing Director and Chief Executive Officer Malay Mukherjee said the company expected to complete the JTCL stake sale by September.
Other key stakeholders in the project include Srei Venture Capital Trust (33.98 per cent stake) and Ashoka Concessions (23 per cent).
To estimate the tollable traffic, IFCI will engage the services of an independent consultant. The consultant will also carry out the valuation of the equity shares of JTCL.
Last week, IFCI had informed stock exchanges about its plan to reduce stake in the NSE. It also plans to divest its entire holding in IFCI Financial Services Ltd, its broking and financial product distribution arm.
Mukherjee said IFCI wasn’t exiting its investments in haste, adding the company had a comfortable capital adequacy level to support business growth. The strategy was to divest stake in non-core assets in phases, he said.
In August 2007, the project to four-lane the Jaora-Nayagaon road in Madhya Pradesh was awarded to JTCL on a build-operate-transfer basis. The project has a concession period of 25 years (till August 2032). The road passes through three districts in the state — Ratlam, Mandsaur and Neemuch. Three sections of the project —Jaora-Mandsaur, Mandsaur-Neemuch and Neemuch-Nayagaon — were commissioned in February 2012.
For 2013-14, JTCL reported net sales of Rs 126.69 crore, against Rs 109.05 crore in 2012-13, while net loss was Rs 25.33 crore, against Rs 21.95 crore in 2012-13, according to a report by Brickwork Ratings.