Sadbhav Infrastructure Projects Ltd (SIPL), a subsidiary of Sadbhav Engineering Ltd (SEL) has entered in to a definitive agreement with Indiainfravit Trust to sell its 100% stake in nine operational road assets. The transaction values its road portfolio at Rs66.1bn which includes Rs25.5bn of equity and Rs40.6bn of debt. The deal will result in massive reduction in debt at SIPL level and advances given to SIPL by SEL worth Rs5.5bn are likely to be repaid. Moreover, out of the nine projects, in one projects viz. Mysore-Bellary, SEL has invested equity to the tune of 74% which will yield close to Rs1bn to SEL. We view this development positive for both SIPL as well SEL as it will lead to leaner balance sheet paving the way for...