Sadbhav Engineering gains as subsidiary to buyout partner's stake in JV firm

Sadbhav Engineering rose 2.33% to Rs 246 at 13:01 IST on BSE after the company said its subsidiary signed a pact for acquiring 20% stake from joint venture partner in Ahmedabad Ring Road Infrastructure.

The announcement was made during trading hours today, 18 September 2014.

Meanwhile, the BSE Sensex was up 373.36 points, or 1.40%, to 27,004.65.

On BSE, so far 20,000 shares were traded in the counter, compared with an average volume of 57,285 shares in the past one quarter.

The stock hit a high of Rs 249.75 and a low of Rs 241.70 so far during the day. The stock hit a record high of Rs 252.10 on 16 September 2014. The stock hit a 52-week low of Rs 58.50 on 25 September 2013.

The stock had outperformed the market over the past one month till 17 September 2014, rising 18.86% compared with 2.02% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 16.61% as against Sensex's 4.35% rise.

The mid-cap company has an equity capital of Rs 15.19 crore. Face value per share is Re 1.

Sadbhav Engineering said its subsidiary Sadbhav Infrastructure Project (SIPL) signed a binding memorandum of understanding (MoU) for acquisition of 20% stake in Ahmedabad Ring Road Infrastructure (ARRIL) from the joint venture partner Patel Infrastructure.

Earlier, SIPL held 80% in ARRIL, while Patel Infrastructure held 20%. Upon completion of the proposed acquisition, subject to signing of definitive transaction documents, receipt of approval from lenders and approval from AUDA, SIPL will hold 100% of the share capital in ARRIL.

Sadbhav Engineering's net profit jumped 67.3% to Rs 26.99 crore on 21.7% growth in net sales to Rs 685.51 crore in Q1 June 2014 over Q1 June 2013.

Sadbhav Engineering is a construction firm with focus on road, irrigation and mining projects.

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