KEC International gains after selling telecom assets

KEC International rose 3.57% to Rs 104.40 at 11:25 IST on BSE after the company said it sold its telecom assets in Chhattisgarh, Meghalya and Mizoram to ATC Telecom Tower Corporation for about Rs 81 crore.

The announcement was made during trading hours today, 16 April 2015.

Meanwhile, the BSE Sensex was down 143.34 points, or 0.50%, to 28,656.35.

On BSE, so far 4.28 lakh shares were traded in the counter, compared with an average volume of 2.13 lakh shares in the past one quarter.

The stock hit a high of Rs 106.50 and a low of Rs 100.70 so far during the day. The stock hit a 52-week high of Rs 153 on 8 July 2014. The stock hit a 52-week low of Rs 71.95 on 26 March 2015.

The stock had outperformed the market over the past one month till 15 April 2015, rising 21.23% compared with 1.04% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 8.97% as against Sensex's 2.58% rise.

The small-cap company has an equity capital of Rs 51.42 crore. Face value per share is Rs 2.

KEC International said it entered into a binding agreement for sale of its telecom assets in the states of Chhattisgarh, Meghalya and Mizoram consisting of 381 telecom sites to ATC Telecom Tower Corporation.

The transaction is subject to obtaining necessary regulatory and third party approvals and complying with the conditions mentioned in the agreement, the company added.

In a separate announcement, the company said that the consideration for the sale of telecom assets is envisaged at about Rs 81 crore.

On consolidated basis, KEC International's net profit rose 246.9% to Rs 66.43 crore on 7.3% decline in net sales to Rs 2021.19 crore in Q3 December 2014 over Q3 December 2013.

KEC International is global infrastructure engineering, procurement and construction (EPC) major. It has presence in the verticals of power transmission, power systems, cables, railways, telecom and water.

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