+
Infrastructure firms deleverage balance sheets through sale of road assets
ROADS & HIGHWAYS

Infrastructure firms deleverage balance sheets through sale of road assets

There is, reportedly, a recent trend following infrastructure construction firms as most of them are taking steps to monetise their road assets. 

The move highlights two primary facts, first, the ability of firms to deleverage and gain value arising from the sale and second, the investors’ interest towards the road assets. 

As reported, Singapore’s Cube Highways and Infrastructure took control of five hybrid annuity model (HAM) road projects that are under-construction through an agreement signed with Dilip Buildcon, which detailed the sale of 100 per cent stake in the projects. Additionally, in a separate agreement the construction company also recently sold its road projects to Mumbai based Shrem Group.  KNR Constructions too, entered into a share purchase agreement with Cube Highways for three of its road assets. 

In terms of financial stress faced by these infrastructure companies, the step is seen as a means of significantly reducing the same.  The sale of stakes releases all funds locked into the project and allows for it to be incorporated into future bids or as growth capital.  Asset monetisation is, therefore, a comparatively reliable means towards achieving stable growth. 

There is, reportedly, a recent trend following infrastructure construction firms as most of them are taking steps to monetise their road assets. The move highlights two primary facts, first, the ability of firms to deleverage and gain value arising from the sale and second, the investors’ interest towards the road assets. As reported, Singapore’s Cube Highways and Infrastructure took control of five hybrid annuity model (HAM) road projects that are under-construction through an agreement signed with Dilip Buildcon, which detailed the sale of 100 per cent stake in the projects. Additionally, in a separate agreement the construction company also recently sold its road projects to Mumbai based Shrem Group.  KNR Constructions too, entered into a share purchase agreement with Cube Highways for three of its road assets. In terms of financial stress faced by these infrastructure companies, the step is seen as a means of significantly reducing the same.  The sale of stakes releases all funds locked into the project and allows for it to be incorporated into future bids or as growth capital.  Asset monetisation is, therefore, a comparatively reliable means towards achieving stable growth. 

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code