IVRCL soars on plan to sell stake in two subsidiaries

IVRCL rose 18.76% to Rs 5 at 9:49 IST on BSE after the company said it entered into a pact with Cube Highways and Infrastructure to sell stake in two subsidiaries.

The announcement was made after market hours yesterday, 20 December 2017.

Meanwhile, the S&P BSE Sensex was up 20.39 points, or 0.06% to 33,797.77.

On the BSE, 7.09 lakh shares were traded in the counter so far, compared with average daily volumes of 2.16 lakh shares in the past two weeks. The stock had hit a high of Rs 5.05 and a low of Rs 4.60 so far during the day. The stock hit a 52-week high of Rs 7.42 on 28 July 2017. The stock hit a 52-week low of Rs 4 on 5 October 2017.

IVRCL said it has entered into share purchase agreements with Cube Highways and Infrastructure Pte (Cube) for sale of the entire stake in two subsidiary companies viz. Salem Tollways (STL) and Kumarapalayam Tollways (KTL). The value of IVRCL's stake in STL and KTL shall be computed on the basis of enterprise value of Rs 342.95 crore for STL and Rs 383.23 crore for KTL subject to adjustments on account of financial indebtedness and working capital and expenses for upcoming major maintenance of each of the project. The expected date of completion of sale is before September 2018 quarter.

IVRCL reported net loss of Rs 280.23 crore in Q2 September 2017 as against net loss of Rs 354.47 crore in Q2 September 2016. Net sales declined 19.4% to Rs 404.22 crore in Q2 September 2017 over Q2 September 2016.

IVRCL is a leading engineering, procurement, & construction (EPC) and Infrastructure company.

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