Welspun Enterprises (WEL), formerly Welspun Projects, part of the USD 2.3 billion Welspun Group, announced its plans to expand its operations in infrastructure and to apply for NBFC (Non-Banking Financial Company) licence.

In the infrastructure space, WEL has agreed to acquire 49% stake in two NHAI Hybrid Annuity Model (HAM) projects from MBL Group, subject to necessary approvals and statutory compliances. WEL will be the sponsor to these two projects, thus expanding its HAM project portfolio to three projects.

The consideration for the stake purchase is Rs 230 million. The company has the option to acquire the remaining 51% stake in these projects as and when the regulator (NHAI) permits. The consideration for the purchase of the remaining stake is fixed at Rs 245 million.

As per the Hybrid Annuity Model (HAM), the projects will have 40% financial support from NHAI. The debt component is estimated to be 48% of the project cost; and as sponsor, the balance will be funded by WEL (apart from the equity of MBL). WEL is in the process of completing documentations for financial closure and appointed date is expected to be announced by NHAI by the end of the month. The EPC contract of both projects will be executed by WEL.

Shares of the company declined Rs 1.5, or 1.06%, to trade at Rs 139.50. The total volume of shares traded was 119,061 at the BSE (9.59 a.m., Tuesday).