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Sadbhav Engineering - Liquidity Issues At Peak, Asset Monetisation Key To Survival: Nirmal Bang

Sadbhav Engineering - Liquidity Issues At Peak, Asset Monetisation Key To Survival: Nirmal Bang

<div class="paragraphs"><p>Workers at a construction site. (Photo: Josue Isai /Source: Unsplash)</p></div>
Workers at a construction site. (Photo: Josue Isai /Source: Unsplash)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

Sadbhav Engineering Ltd. is at an important phase wherein it is trying to survive through asset monetisation, raising of funds via all means possible and staying afloat so that it can push for its revival.

Higher capital allocation to the asset business and staggered cash inflows from asset monetisation till date has resulted in severe liquidity issues. The company has almost exhausted its working capital limits and meeting debt obligation this year will be a challenge unless significant cash infusion takes place in the balance sheet.

Sadbhav Engineering needs working capital as well as growth capital to improve its execution and it is expecting proceeds from the following:

  1. sale of Maharashtra Border Check Post project,

  2. sale of Ahmedabad Ring Road project,

  3. arbitration awards from various projects ans

  4. mobilisation advance from a couple of hybrid-annuity-model projects and the Ahmedabad-Dholera project.

Click on the attachment to read the full report:

Nirmal Bang Sadbhav Engineering- Company Update- 24 June 2022.pdf

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