Ashoka Buildcon gains after receiving another tranche of investment from a PE fund

Ashoka Buildcon rose 3.81% to Rs 47.70 at 14:16 IST on BSE after the company said its subsidiary Ashoka Concessions has received another tranche of investment of Rs 110 crore from private equity fund SBI-Macquarie.

The announcement was made during trading hours today, 4 October 2013.

Meanwhile, the S&P BSE Sensex was up 148.07 points or 0.74% at 20,050.14.

On BSE, 8,715 shares were traded in the counter as against average daily volume of 3,014 shares in the past one quarter.

The stock hit a high of Rs 48 and low of Rs 44.35 so far during the day. The stock had hit a 52-week high of Rs 83.32 on 13 May 2013. The stock had hit a record low of Rs 41.30 on 6 August 2013.

The stock had underperformed the market over the past one month till 3 October 2013, gaining 1.77% compared with the Sensex's 9.14% rise. The scrip had also underperformed the market in past one quarter, sliding 28.43% as against Sensex's 3.78% rise.

The small-cap company has equity capital of Rs 78.98 crore. Face value per share is Rs 5.

Ashoka Concessions (ACL) has received another tranche of investment of Rs 110 crore from SBI-Macquarie which will be utilized for equity investments into various under construction projects. Including this tranche, the total equity investment by SBI-Macquarie in ACL is Rs 490 crore and balance would be received as per equity requirements of projects under construction, Ashoka Buildcon said in a statement.

Ashoka Buildcon also said that its associate company viz. Jaora-Nayagaon Toll Road Company (JNRL), the special purpose vehicle (SPV) incorporated for the project viz. design, construction, finance, strengthening, widening, operation and maintenance on BOT basis for the four laning of Jaora-Nayagaon section of state highway no. 31 in Madhya Pradesh, has been sanctioned re-finance aggregating Rs 613 crore by ICICI Bank which replaces existing project loan of Rs 540 crore. This will help JNRL to reduce interest cost as the rate has been reduced by 90 basis points, the company said. These proceeds will be used for repayment of creditors of JNRL, the company added. The project is on DBFOT (toll) basis with a concession period of 25 years including the construction period. Presently, JNRL is collecting toll on the this project.

Ashoka Buildcon's consolidated net profit declined 26% to Rs 30.44 crore on 0.8% growth in net sales to Rs 468.77 crore in Q1 June 2013 over Q1 June 2012.

Ashoka Buildcon is a leading highway concessionaire and engineering, procurement and construction (EPC) company.

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