Ramky Infrastructure to sell NAM Expressway, stock soars

Ramky Infrastructure plans to sell 100 per cent stake in NAM Expressway Limited. The company has signed a share purchase agreement with Cube Highways Private Limited, Singapore for the deal which will lead to significant debt reduction. 

The sale of NAM Expressway Limited is proposed for a consideration of Rs. 140 crore along with all its liabilities, the company said in a filing to the BSE exchange. The proceed from this stake sale will be utilise for retiring Ramky’s debt. Post the deal, the company's debt will be reduced by about Rs. 1,529 crore.

As on FY18, the company’s long-term borrowings stood at Rs. 2,012 crore. The company’s debt-to-equity ratio for fiscal year 2018 was at 4.91x and interest coverage ratio (this ratio states the company’s ability to service its debt) for same period was at 1.3x.

With this positive development, the stock of Ramky Infrastructure opened gap up at Rs. 214.5 apiece as against its previous close of Rs. 204.3, in early trade on Monday. At 11.54 hours, the stock was trading at Rs. 210.20 apiece, up by almost 2.9 per cent on BSE.