linkedin
BROUGHT TO YOU BY
Exclusive Access, Inclusive Growth

WELCOME TO ET PRIME

BROUGTH TO YOU BY
Exclusive Access, Inclusive Growth
ET Prime
Infrastructure

Sadbhav Infra’s proposed remerger leaves investors bitter. Did Nomura, Norwest get a raw deal?

In October 2019, Sadbhav Infra announced its plans to remerge with parent Sadbhav Engineering, owing to rising debt and falling profitability. The deal has sounded the death knell for Sadbhav Infra’s investors, who had believed in the company’s asset-ownership pitch back in 2015, at the time of listing. But for parent Sadbhav Engineering, it’s a blessing.
font size
FONT SIZE
save
SAVE
saved
SAVED
Gift this article
GIFT ARTICLE
priyanka
12 Dec 2019 7 Mins Read 1 comments
Concept by Muhabit ul haq; photo by Getty Images
Concept by Muhabit ul haq; photo by Getty Images
On September 15, 2015, Sadbhav Infrastructure, the asset-ownership business of Sadbhav Engineering, got listed on the stock exchanges at 8% premium to its IPO price of INR103 a share. The listing had a dual purpose – to raise funds to pare project debt and to give an exit to private-equity investors Xander and Norwest. In less than five
the exchanges last year after the business was demerged from its EPC-focused parent Gayatri Projects. Gayatri Highways has lost more than 86% of its valuation since listing, while Gammon Infraprojects has seen its market cap decline from INR591 crore in FY14 to INR56.5 crore at the end of FY19. ( Graphics by Mohammad Arshad; research support by Rochelle Britto)
On September 15, 2015, Sadbhav Infrastructure, the asset-ownership business of Sadbhav Engineering, got listed on the stock exchanges at 8% premium to its IPO price of INR103 a share. The listing had a dual purpose – to raise funds to pare project debt and to give an exit to private-equity investors Xander and Norwest. In less than five the exchanges last year after the business was demerged from its EPC-focused parent Gayatri Projects. Gayatri Highways has lost more than 86% of its valuation since listing, while Gammon Infraprojects has seen its market cap decline from INR591 crore in FY14 to INR56.5 crore at the end of FY19. ( Graphics by Mohammad Arshad; research support by Rochelle Britto)

The latest from ET Prime is now on Telegram. To subscribe to our Telegram newsletter click here.

Gift this story

YOU CAN GIFT 0 MORE STORIES THIS MONTH

Maximum 10 Email IDs allowed

300 characters remaining

Gift Sent Successfully

Limit Reached
Limit Reached

You’ve gifted all the 0 articles from your monthly gift bucket!

Please come back next month.

0 more articles will be waiting for you in your gift bucket.

Current Edition

Is mid-cap the big opportunity in the current market crash?
Investing

Is mid-cap the big opportunity in the current market crash?

Sixteen of the top 25 mid-cap stocks have performed better than the 200-day moving average. As the Covid-19 pandemic takes a heavy toll on the market, the Nifty Midcap 100 Index and the Nifty 50 are equally impacted. But many investors believe they can do better by investing in mid-cap stocks for higher returns.

There is no playbook on resilience
Strategy

There is no playbook on resilience

Trust the process. In times like these, belief in our own abilities and those around us becomes paramount, says Albinder Dhindsa, co-founder and CEO of leading e-grocery player Grofers.

[[^message]]

Result

[[/message]] [[#message]]

[[message]]

[[/message]]