Investment20 Feb 2026, 02:45 pm
Sobhagya Mercantile to Raise ₹178.71 Crores for Hybrid Annuity Model Road Projects
AI Summary
Sobhagya Mercantile Ltd. plans to raise approximately ₹178.71 Crores through a Preferential Issue of Convertible Warrants. The funds will be utilized for investing in promoter group Special Purpose Vehicles (SPVs) executing road infrastructure projects under the Hybrid Annuity Model (HAM) awarded by the Department of Public Works, Government of Maharashtra. The company intends to deploy around ₹154.30 Crores for equity and/or quasi-equity investment in the SPVs. The HAM model ensures sovereign-linked credit strength and minimizes traffic and revenue risks, providing predictable cash flows through annuity and interest income, O&M revenue, and equity upside.
Key Highlights
- Sobhagya Mercantile to raise ₹178.71 Crores for infrastructure projects
- Investment in promoter group SPVs executing HAM road projects
- Expected IRR of approximately 16% on the company's investment
- Minimal demand/traffic risk and government-backed cash flows
- Additional O&M revenue overlay for the company