Oriental Structural Engineers Private Limited sells 100% shareholding in one of its SPVs to Oriental Infrastructure Trust for US$160 mn
EY acted as the exclusive financial advisor to Oriental Structural Engineers Private Limited on the sale of its 100% shareholding and economic interest in Biaora To Dewas Highway Private Limited (BDHPL) to Oriental Infrastructure Trust for US$160 million.
Oriental Infrastructure Trust has an investment objective to increase the life of the assets to ensure stable distribution to Unitholder. Acquisition of BDHPL was part of this strategy.
Incorporated in the year 1971, Oriental Structural Engineers (OSE) has grown to be one of the top players in the Indian infrastructure sector, specializing in Highways & Airfield. Today, OSE has grown to INR 27 billion business with two main verticals- Engineering, procurement, and construction (EPC) and Development of Highway Assets on (BOT) Built Operate and Transfer-on Public-private Partnership Mode. Over the years, it has constructed more than 8,162 km and has invested over US$2000 mn in the BOT Business creating Highway assets for itself and has a revenue of US$340 million.
Founded in 2019, Oriental Infrastructure Trust is a Delhi based irrevocable trust and currently has a portfolio of five road assets, consisting of four toll-road assets and one annuity road asset.
EY assisted Oriental Structural Engineers Private Limited (also the Sponsor of the InvIT) in the first sponsor asset dropdown into the InvIT. The transaction is also the largest single highway asset drop down to an InvIT in India. As part of the process, we worked extensively with all unitholders and delivered value to both our client and InvIT. EY also worked on financing package of this asset and led the transaction from ideation to closure. This deal further strengthens EY’s market leading position in M&A for InvITs.
