- 28 Apr 2022
- ICICIdirect Research
ASHOKA BUILDCON REPORTS SALE OF 100% STAKE IN GVR ASHOKA CHENNAI ORR LTD
ASHOKA - 236 Change: -3.61 (-1.51 %)News: Ashoka Buildcon has entered into a share purchase agreement with National Investment and Infrastructure Fund Ltd (NIIF) and GVR Ashoka Chennai ORR Ltd (CORR) for the sale of entire 100% stake in CORR for an aggregate financial consideration of Rs 686 crore. The completion of the transaction is subject to Ashoka Buildcon acquiring 50% of the share capital of CORR held by GVR Infra Projects Ltd
Views: Ashoka Buildcon had indicated earlier regarding sale of equity for Chennai ORR road project and was expecting deal to conclude by FY22-end. The company’s equity investment and sub-debt towards the project by the company as on December 31, 2021 was Rs 189 crore and Rs 240 crore, respectively. Nevertheless, proceed from asset sale is likely to free its invested capital, in-turn, aiding company to de-leverage balance sheet
Impact: Positive