Patel Engineering has received board approval to sell its entire stake in its associate company, ACP Tollways Pvt Ltd. The transaction involves the divestment of 84,95,040 equity shares. This strategic move is valued at a total consideration of ₹55 crore. The completion of the sale is anticipated by the end of the current fiscal year, ending March 31, 2027, pending necessary approvals from the associate company’s lenders.
Strategic Divestment Overview
On May 14, 2026, the Board of Directors of Patel Engineering gave its formal approval to offload the company’s full interest in ACP Tollways Pvt Ltd. The deal involves the transfer of 84,95,040 shares, with a face value of ₹100 each. This transaction is part of the company’s broader efforts to streamline its investment portfolio.
Financial Highlights
The divestment is backed by a valuation of ₹55 crore in total consideration. Regarding the associate company’s recent performance metrics, it reported a nil turnover for the previous financial year. As of March 31, 2025, the associate company’s net worth stood at ₹38.76 crore, representing 1.02% of Patel Engineering’s consolidated net worth. Additionally, it contributed ₹18.84 crore in profit, which accounted for 7.78% of the parent company’s consolidated net profit. The carrying value of this investment in the consolidated financials as of March 31, 2026, was recorded at ₹26.03 crore.
Next Steps and Execution
The transaction is currently subject to obtaining requisite clearances from the lenders associated with the shares being pledged. Once these approvals are secured, the formal agreement for sale will be executed. The company aims to finalize the entire disposal process before March 31, 2027. It has been confirmed that this transaction is not a related party deal and does not involve the promoter group.
Source: BSE
