Hindustan Construction Company (HCC Group) said that it has agreed to sell Baharampore-Farakka Highways Limited (BFHL) to Singapore-based Cube Highways and Infrastructure V at an enterprise value of INR 1,279 crores.

The deal implies an equity valuation of INR 600 crores for Baharampore-Farakka Highways.

Apart from the equity value, an earnout of INR 200 crores is to be paid by Cube Highways and Infrastructure V in May 2024, which will be based on meeting revenue thresholds. HCC Group will also be eligible to earn a material revenue share for the life of the concession, which is nearly 19 years from now.

Arjun Dhawan — HCC Group CEO said: “HCC is proud of its PPP track record, having developed & operated Rs.7,000 crore of value generating BOTs. The sale underscores our commitment to create liquidity that will bolster both operations and future business growth.”

Baharampore-Farakka Highways is a special purpose vehicle of HCC Group’s infrastructure development arm HCC Concessions. It was founded in 2010 for design, build, finance, operate and transfer (DBFOT) of the four-lane 101km long highway in West Bengal between Baharampore and Farakka section of NH-12 under NHDP Phase Ill.

Currently, the Baharampore-Farakka highway is tolling 90km and the remaining 11km of Baharampore Bypass will be tollable after completion in Q4 FY23, which is expected to boost the normal toll revenue by around 45%.

The closing of the deal is subject to customary due diligence and approvals from the National Highways Authority of India (NHAI) and others.

  Arjun Dhawan, Baharampore, Baharampore-Farakka Highways, BFHL, Cube Highways, Farakka, HCC Concessions, HCC Group, Hindustan Construction Company, India, National Highways Authority of India, NHAI, Singapore, West Bengal