Valecha Engineering soars 10% on sale of three road assets

The company's board approved the sale of three BOT road assets located in MP and Gujarat for Rs 309 crore.

Valecha Engineering is locked in upper circuit of 10% at Rs 68.40 on National Stock Exchange after the company said its board approved the sale of three Build, Operate and Transfer (BOT) basis road assets to New Generation Infrastructure, Inc for Rs 309 crore.

Until noon, a combined around 19,000 shares changed hands and there are pending buy orders for 117,000 shares on NSE and BSE.

The board of directors of the company on September 27, 2014 approved the sale of three Build, Operate and Transfer basis road assets located in Madhya Pradesh and Gujarat to New Generation Infrastructure, Inc., a subsidiary of New Generation Holdings, Inc for an aggregate consideration for approximately Rs 309 crore, Valehca Engineering said in a statement.

New Generation Infrastructure, Inc is a global diversified infrastructure and energy developer with a diversified resource type in solar, hydro, wind, and thermal.

As a part of the proposed transaction, Valecha Infrastructure, a wholly owned subsidiary of the Company has signed agreements with the Purchaser and agreed to sell its shareholding in Valecha LM Toll Private Limited and Valecha Badwani Sendhwa Tollways Limited to New Generation Infrastructure, Inc, it added.

The company said it has also entered into a separate agreement with the Purchaser and agreed to sell its shareholding in Valecha Infrastructure to the Purchaser upon completion of the above transaction and receipt of regulatory and third party consents and approvals including satisfaction of certain condition precedents by the parties.