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Ashoka Buildcon’s Viva Highways Ltd, has monetised land in Pune’s Hinjewadi for ₹453 crore. This move follows the company’s recent successes, including securing two major infrastructure projects worth ₹1,280.8 crore.
Ashoka Buildcon Ltd, a renowned name in the infrastructure sector, announced on Thursday (September 5) that its wholly-owned subsidiary, Viva Highways Ltd (VHL), has successfully monetised land in Pune for ₹453 crore. The land, located in the prime Hinjewadi area, forms part of VHL’s real estate portfolio.
In a stock exchange filing, Ashoka Buildcon confirmed the transaction, stating, “This is to inform that Ashoka Buildcon Limited has been apprised by Viva Highways Limited (VHL), a wholly owned subsidiary, that the land owned by it under its Real Estate Portfolio, situated at Hinjewadi, Pune, has been monetized at a total consideration of ₹453 crore."
This land monetisation provides a significant financial boost to Ashoka Buildcon, reflecting the company’s ability to leverage its real estate assets efficiently. The substantial sum of ₹453 crore not only strengthens the company’s financial position but also enhances its liquidity, enabling potential future investments in key infrastructure projects.
Viva Highways' land monetisation is well-timed, considering Ashoka Buildcon's recent win as the lowest bidder for two major Mumbai Metropolitan Region Development Authority (MMRDA) projects. These contracts, worth ₹1,280.8 crore, add to the company’s already impressive portfolio of ongoing infrastructure works.
Last month, Ashoka Buildcon emerged as the lowest bidder for two significant infrastructure projects in the Mumbai region, which are estimated at ₹1,280.8 crore. The projects include designing and constructing a creek bridge from Kolshet to Kalher, valued at ₹289.6 crore, and another from Gaimukh to Payegaon, worth ₹991.2 crore. The completion timelines for these projects are set at 42 months and 36 months, respectively.
Ashoka Buildcon’s business model primarily focuses on engineering, procurement, and construction (EPC) contracts and build-operate-transfer (BOT) models, which have helped the company sustain its position in the competitive infrastructure market.
The company’s shares have seen a positive upturn, with Ashoka Buildcon Ltd’s stock closing at ₹268.10, up by ₹31.45 or 13.29% on the Bombay Stock Exchange (BSE). This rise in stock value can be attributed to the successful monetisation of its land assets and the recent project wins.
With the monetisation of the Hinjewadi land and continued success in securing new contracts, Ashoka Buildcon remains a key player in India's infrastructure sector. This latest development reinforces the company's financial health and paves the way for future growth opportunities.
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