Here's why Ashoka Buildcon shares zoomed 7% on Oct 31; details here

Shares of Ashoka Buildcon rose up to 6.7 per cent at Rs 248.45 per share on the BSE. Ashoka Buildcon share price jumped after the company on Wednesday acquired an additional 34 per cent stake in Ashoka Concessions Limited (ACL) for Rs 1,526 crore.

 

The acquisition is being made to provide exit to investors including Macquarie SBI Infrastructure Investments and SBI Macquarie Infrastructure Trust. 

 

Ashoka Buildcon already holds 66 per cent equity shares in ACL and post-acquisition ACL will become a wholly owned subsidiary of the company.

 

ACL,  a subsidiary of Ashoka Buildcon and one of the leading highway infrastructure companies in India. ACL is the road infrastructure arm of Ashoka group and floated for bringing under one umbrella - BOT road and annuity highway projects. This acquisition will consolidate the company’s investments into ACL and facilitate exit to financial investors, the company said in an exchange filing on Wednesday. 

 

ACL has a total income of Rs.148.26 crores and net worth of Rs.944.54 crores based on audited financial statements of financial year 2024. 

 

Founded in 1993, Ashoka Buildcon is engaged in the construction of infrastructure facilities on both engineering procurement and construction (EPC) and build operate and transfer (BOT) bases. The company also operates in the sale of ready-mix concrete.

 

Ashoka Buildcon share price history

The company’s stock has outperformed the market year to date as it has risen 74.8 per cent, while gaining 84.1 per cent in the last one year. In comparison BSE Sensex has risen 10.2 per cent year to date and 24.7 per cent in a year. 

 

The company has a total market capitalisation of Rs 6,721.92 crore. Its shares are trading at a price to earnings multiple of 13.99 times and at an earning per share of Rs 16.64. 

 

At 10:16 AM, the stock price of the company was up 3.01 per cent at Rs 239.85 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.31 per cent to 79,698.03 level.