Highways builder Dilip Buildcon Ltd (DBL) is in talks with large global financial investors to sell seven of its road projects. The company that claims to be India’s largest road construction company, currently building 16 per cent of all National Highways, has already sold five of its projects to Cube Highways. After the successful transaction of selling HAM portfolio with Shrem group, we have sold yet another portfolio of 5 HAM projects to Cube Highways, focusing on the efficient use of equity, as per report. It had won 12 HAM (hybrid annuity mode) projects in 2018-19. The company is in talks with few large global financial investors in this regard.
To fuel highway projects, the government had earlier approved HAM under which it provides 40 per cent of the project cost to the developer to start work while the remaining investment is made by the developer. Even in these challenging times, Dilip Buildcon completed 14 projects worth Rs 10,544.5 crore in 2019-20, the company said and added out of these, six road projects were completed before the scheduled time and earned an early completion bonus of Rs 128.2 crore.
In 2019-20, DBL won new projects valued at Rs 6,725 crore. These projects are won across five sectors viz road, mining, airport, special bridge and irrigation in 6 states. For better financial performance, the company reportedly conveyed that it will improve its project selection strategy, increase control on costs, emphasise on cash flow generation and de-leverage the balance sheet for better returns. The company will continue to identify and capitalise on growth opportunities in various sectors.