{"id":280380,"date":"2019-07-05T06:05:57","date_gmt":"2019-07-05T06:05:57","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=280380"},"modified":"2019-07-05T09:23:05","modified_gmt":"2019-07-05T09:23:05","slug":"sadbhav-engineering-maintain-buy-with-a-tp-of-rs-301","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/sadbhav-engineering-maintain-buy-with-a-tp-of-rs-301\/","title":{"rendered":"Sadbhav Engineering: Maintain \u2018buy\u2019 with a TP of Rs 301"},"content":{"rendered":"<p>In the much-awaited asset monetization deal, Sadbhav Engineering (SADE), through its subsidiary Sadbhav Infra Projects (SIPL), will sell stake in 9 BOT assets (of its portfolio of 12 assets) to lndlnfravit Trust at EV of `66 bn \u2013 7% above our valuation. Equity valuation at 1.7x P\/B is thus far premium; on negative side, SIPL\u2019s 10% stake in InVIT valued at `6.5 bn will lead to lower upfront cash flows vs. market expectation.<\/p>\n<p>The deal is all-round positive for IndInfravit given expected IRR of 13-14% vs. likes of IRB InVIT at 9-10%; slight discount (3%) to previous deal by existing partners of InVIT by OMERS Infra (Feb-19) is positive for SIPL. Remain constructive on SADE and expect cash proceeds to aid deleverage (~`7 bn) and release growth capital for new projects (`19-20 bn).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the much-awaited asset monetization deal, Sadbhav Engineering (SADE), through its subsidiary Sadbhav Infra Projects (SIPL), will sell stake in 9 BOT assets (of its portfolio of 12 assets) to lndlnfravit Trust at EV of `66 bn \u2013 7% above our valuation. Equity valuation at 1.7x P\/B is thus far premium; on negative side, SIPL\u2019s 10% stake in InVIT valued at `6.5 bn will lead to lower upfront cash flows vs. market expectation. The deal is all-round positive for IndInfravit given expected IRR of 13-14% vs. likes of IRB InVIT at 9-10%; slight discount (3%) to previous deal by existing [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,197,138],"tags":[],"class_list":["post-280380","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-roads-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/280380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=280380"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/280380\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=280380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=280380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=280380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}