Infra
Infrastructure

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

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

Concept by Muhabit ul haq; photo by Getty Images

Synopsis

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.

By
8 mins read,
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 years, Sadbhav Infrastructure has announced its plans to remerge with parent Sadbhav Engineering. This may not
( Originally published on Dec 12, 2019 )

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