ICRA Rating has said that merger and acquisitions in the domestic road sector have witnessed a spurt between 2015 and 2018. A total of 52 road projects worth Rs. 37,019 crore have been sold during the three years.
“Out of the total 52 projects, six were sold at a discount and 46 at a premium (ranging between 2 and 21 per cent returns),” Rajeshwar Burla, AVP and Associate Head, Corporate Ratings, ICRA, said.
He added that the change of ownership has significantly improved the refinancing ability of the projects.
“Many projects have refinanced debt with elongated tenure and lower interest rate. Around one-third of the assets witnessed steep rating upgrades,” Burla said.
