Asset sale boost for Dilip Buildcon; stock gains more than 10%

The move is expected to strengthen its balance sheet and improve new project visibility

Dilip Buildcon’s stock gained more than 10 per cent on the bourses on Monday after the company announced the sale of some of its assets and the timeline to achieve the same. Cube Highways and Infrastructure is buying five of Dilip Buildcon’s 12 hybrid annuity model (HAM) projects.  

The move to offload assets was anticipated given the debt on the company’s balance sheet. While Dilip Buildcon has a good order book and a track record of strong execution, its debt has grown substantially. This led to higher outgo on interest costs, denting the bottom line. Analysts at HDFC Securities had indicated