KNR Constructions rose 8.60% to Rs 276.45 after the company said it will sell its entire stake in its special purpose vehicle, KNR Walayar Tollways.
KNR Constructions after market hours on Thursday, announced that it will sell its entire equity stake in a toll road BOT asset of special purpose vehicle (SPV), KNR Walayar Tollways (KWTPL), to Singapore-based Cube Highways and Infrastructure III. KNR Constructions holds 100% equity in the SPV.
The enterprise value of the assets for this transaction is Rs 529.27 crore excluding claims receivable from National Highway Authority of India (NHAI) and other governmental instrumentalities, which would be passed through to the company as and when realized, it added.
The completion of the transaction is contingent upon fulfillment of certain customary regulatory and lender approvals and parties anticipate closing of the transaction within next 2-3 months.
Cube Highways and Infrastructure III is a Singapore-based company investing in road and highway projects, along with other select infrastructure sectors in India.
KWTPL has been granted a 20-year design-build-fund-operate-transfer concession by NHAI for four-laning the Walayar-Vadakkanchery section of NH-47 (New NH-544) in Kerala.
Last month, India Ratings and Research (Ind-Ra) affirmed KWTPL's bank loans at 'IND A+'/Stable. The affirmation reflects KWTPL's continued strong financial performance in FY19. However, the rating is constrained by inherent risks in toll road project and to an extent the absence of a debt service reserve.
Meanwhile, the S&P BSE Sensex was up 214 points or 0.52% to 41665.94.
On the BSE, 40,513 shares were traded in the counter so far compared with average daily volumes of 15,545 shares in the past two weeks. The stock hit a high of Rs 282 and a low of Rs 260 so far during the day.
The stock hit a 52-week high of Rs 303.3 on 28 May 2019. The stock hit a 52-week low of Rs 187 on 05 Mar 2019.
Net profit of KNR Constructions rose 55.76% to Rs 70.09 crore on 31.21% rise in net sales to Rs 546.20 crore in Q2 September 2019 over Q2 September 2018.
KNR Constructions is a multidomain infrastructure project development company providing (EPC) engineering, procurement and construction services across various fast growing sectors namely roads & highways, irrigation and urban water infrastructure management.
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