KNR jumps 10 per cent stake sell news in SPV
The shares of KNR Construction surged more than 10 per cent in the opening trade on Friday after the company announced that it has entered a share purchase agreement with Cube Highway and Infra. The announcement came after market hours on Thursday.
The press release to the stock exchanges said that the enterprise value of the assets for the transaction is Rs 529.27 crore excluding the claims receivable from NHAI and other regulatory institutions. Under the stated SPA, the company will sell its entire equity stake in a toll road BOT asset of KNR Walayar Tollways private limited. The KNR holds 100 per cent equity stake in SPV.
As per FY19 annual report of the KNR Construction, exit of such SPVs after mandatory lock-in period would result in return of more than 1.5 times of the total investment. The monetization in such projects and capital addition would help company in reinvesting in future projects. As of end of the FY19 the KNR Walayar Tollways had outstanding debt of Rs 156.07 crore.
The total order book of the company, as per last reported financial numbers, stood at Rs 6,682 crore. The order book mix stands as Rs. 4831 crore from road division and Rs 1,850 crore from irrigation projects.
At 11.00 am stock traded as high as 9 per cent at Rs 277 on the BSE.