KNR Constructions signs deal to sell SPV to Cube Highways

KNR Constructions informed the bourses that the company has entered into Share Purchase Agreement on August 16, 2019 with Cube Highways and Infrastructure for KNR Shankarampet Projects Special Purpose Vehicle (SPV). Pursuant to which the company will, in a phased manner, sell to the investor its entire shareholding in the SPV.

The transaction is contemplated to be completed in two stages, with the first stage scheduled to be completed after the achievement of the Commercial Operation Date (the COD) as per Concession Agreement and the second stage scheduled to be completed after the expiry of mandatory lock-in period as per the Concession Agreement.

The sale is for one HAM project, which is at different stages of pre-construction. The company is expected to invest Rs. 53.16 crore (in form of equity & sub-debt) against which the KNR is expected to receive a total of Rs. 95.79 crore through this transaction, which may undergo some changes at the time of COD.

KNR Constructions Limited is an infrastructure development company providing engineering, procurement and construction services across various fast-growing sectors; namely, roads and highways, irrigation and urban water infrastructure management.

On Friday, the stock of KNR Constructions opened at Rs. 235 per share and made an intraday high and low of Rs. 238.80 and Rs. 228.65, respectively on the BSE. At 13:01 hours, the stock was trading nearly at Rs. 233.85 on the BSE.