KNR Construction mulls to monetise HAM projects

Road and infrastructure builder, KNR Construction may sell four of its HAM (Hybrid Annuity Model) projects, reported a leading business daily. The company is said to be in talks with private equity firm Brookfield and Cube Highway for the deal.

After the completion of construction of these projects, the enterprise value (EV) is likely to be Rs. 4,000 crore. The monetisation of these assets would help KNR Construction to keep its balance sheet lean and leverage it for bidding further projects.

Financial closure for the company’s 4 HAM projects is under progress and one HAM Project has received LOA.

The company holds strong order book of Rs. 1,980 crore as on June 30, 2018 comprising of Rs. 1,544.6 crore in Roads sector, Rs. 433.7 crore in Irrigation and Rs. 1.7 crore in others.

In the recently concluded first quarter of fiscal year 2019, the KNR reported 16 per cent yoy growth in revenue to Rs. 556.4 crore. Notably, during the quarter, the company reported 30 per cent yoy growth in EBITDA to Rs. 109.9 crore. However, the company’s net profit rose 9 per cent yoy to Rs. 740 crore.

The stock of KNR Construction on Thursday was trading at a negative mark in the morning session. KNR opened at around Rs. 230 per share and at 13.02 hours, the stock was trading at Rs. 228.3 per share, close to its previous close of Rs. 228.2.