Merger of Sadbhav Group companies to streamline cash flow

The merger of Sadbhav Engineering (SEL) with its subsidiary Sadbhav Infrastructure Projects (SIPL) will result in operational synergy and improve cash flow management of the Ahmedabad-based infrastructure focused group, industry analysts said.
On October 19, the Sadbhav group had announced the merger between the two entities, subject to requisite approvals.
SIPL, which was listed on the exchanges only four years ago, is engaged in construction, operation and maintenance of infrastructure projects directly and through special purpose vehicles. Currently, the infrastructure company has 11 operational build-operate-transfer (BOT) assets, of which nine will be acquired by the Larsen & Toubro Group-sponsored infrastructure investment fund (InvIT), IndInfravit