 "KNR Constructions share price settles off day's high; Co to exit four SPVs")
KNR Constructions share price today: KNR Constructions share price settled off the day’s high on Friday. Earlier in the day, KNR Construction share price jumped nearly 9 per cent as the company announced that it will sell four special purpose vehicles to Indus Infra Trust.
KNR Constructions share price rose as much as 8.76 per cent to the day’s high of ₹186 apiece. The counter pared some gains to end 4.90 per cent higher at ₹179.40.
The NSE Nifty 50 ended 0.38 per cent down at 26,042.30.
KNR Construction recorded a five-day winning streak. In the five sessions, the scrip rose 26.25 per cent.
Why did the KNR Constructions share price rise today?
KNR Constructions share price rose as it is set to exit four highway projects in a move to recycle capital and receive free cash. Divesting stakes in such projects is seen as a positive, asset-light move.
KNR Constructions has entered into a share purchase agreement with the Indus Infra Trust for the purpose of offloading a 100 per cent stake, including sub-debt of four special purpose vehicles. These four highway special purpose vehicles are KNR Palani Infra Private Limited, KNR Ramagiri Infra Private Limited, KNR Guruvayur Infra Private Limited, and KNR Ramanattukara Infra Private Limited, the company revealed in an exchange filing on Wednesday.
The stake sale is subject to the shareholding transfer restrictions set out in the concession agreement executed between the National Highway Authority of India and the respective special purpose vehicles, along with other regulatory and lender approvals, KNR Constructions said in the exchange filing.
The company will invest ₹566.83 crore through equity and sub-debt in the special purpose vehicle, against which the company expects to receive a total sum of ₹1,543.19 crore towards estimated cash surplus, according to the exchange filing.
KNR Constructions and Indus Infra Trust will execute the divestment after receiving approval from the various authorities and lenders in accordance with the provisions of the Concession Agreement. The divestment will likely be complete on or before September 30, 2026, the company said in the exchange filing.
Indus Infra Trust is a publicly listed infrastructure investment trust. It is registered with the Securities Exchange Board of India (Sebi), under the Sebi (Infrastructure Investment Trusts) Regulations, 2014. The trust was set up to acquire, manage, and invest in a portfolio of infrastructure assets across sectors and securities of companies in this space.