KNR Constructions divests HAM project

The company has agreed to divest its SPV in a phased manner to Cube Highways. The divestment of the Hybrid Annuity Model (HAM) project is expected to fetch the company Rs. 73 crore.

KNR Construction's Special Purpose Vehicle (SPV) KNR Srirangam Infra Private Limited has signed an agreement to divest HAM project to Cube Highways. For the project, KNR is expected to invest Rs. 49.08 crore and through the deal, it is expected to receive approximately Rs. 73 crore.

As per the share purchase agreement signed between KNR Constructions and  Cube Highways, the divestment will be conducted in two stages. The first stage of divestment will be undertaken post the achievement of the Commercial Operation Date (COD) for the projects. While the second stage is after the expiry of the mandatory lock-in period. The transaction is subject to the shareholding transfer clauses set out in the concession agreement executed between the National Highway Authority of India (NHAI) and the SPV, as well as regulatory and lender approvals.

Cube Highways and Infrastructure is a Singapore-based company that acquires and operates transportation projects. 

However, despite the positive news, the stock of KNR Construction was trading in red in the early morning session on Tuesday. At 9:18 hours, the stock was at Rs. 202.75 per share, up by 0.61 per cent on NSE.