KNR Constructions Ltd, a dominant infra sector player, successfully completed its 100% sale of KNR Walayar Tollways Private Limited to Cube Highways and infrastructure III Pte Ltd, a Singapore-based company investing in road and highway projects, in which I Squared Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority are shareholders.
KNR Walayar Tollways Private Limited (the 'Company') is a Special Purpose Vehicle ("SPV") promoted by KNR Constructions Limited ('KNR').
The Company has entered into a Concession Agreement with National Highway Authority of lndia ("NHAI") for Design, Build, Finance, Operate and Transfer (The "DBFOT") from KM 182.250 to KM 240.000 Walayar - Vadakkancherry of NH-47 in the State of Kerala, Under NHDP - II) on BOT (Toll) basis. The company achieved COD with effect from 31st October 2015.
The agreed enterprise value of Rs.511.78 Crores (excluding claims receivable from NHAI and other governmental instrumentalities) is comprising of debt of Rs 127.10 Crores and an equity valuation of Rs 384.68 Crores. Total pay-out of Rs 384.58 Crores to the Company is inclusive of (i) Rs 308.03 Crores which combines equity and repayment of unsecured loan (ii) Rs 14.90 Crores towards working capital pass through as and when realized (iii) Total hold back of Rs 61.75 crores to be released on achieving various milestones, comprising of (a) Rs 16 crores to be released on completion of pending Income Tax Assessment, (b) Rs 16 crores to be released on achievement of agreed traffic / revenue projections for the period upto July 2021, and (c) Rs 27 crores to be released on achievement of agreed traffic/revenue projections for the period from April 2021 till March 2023, (d) Rs 2.75 crores to be released on settlement of differential interest rate dues to Lenders and of outstanding Independent Engineer fees. In addition, it is also agreed that claims receivable from NHAI against the Arbitration Award of Rs 170.60 Crores shall be passed through to KNRCL as and when realised.
Mr K. Jalandhar Reddy, Executive Director Of KNR Construction said the company could successfully complete the 100% sale of KNR Walayar Tollways to cube Highways and Infrastructure III Pte ltd in line with the company's policy of making asset light by monetization of BOT/HAM/Annuity projects and thereby recycle/reinvest the amount unlocked by way of sale, in new HAM/Annuity projects and EPC business. The onslaught of COVID-19 did delay the completion and also the inflow of Toll collection. Though the Toll collection is slowly coming to pre covid-19 levels, it necessitated the restructuring of the transaction with the hold back of certain amounts to be released on achieving certain milestones.
The consortium of lenders to KNR Walayar Tollways Private Limited are Central Bank of India (Lead Member) and Canara Bank, Bank of Baroda and Bank of India and M/s Cyril Amarchand Mangaldas, New Delhi acted as the legal advisors to the company for the transaction.
Shares of KNR CONSTRUCTIONS LTD. was last trading in BSE at Rs.252.2 as compared to the previous close of Rs. 249.25. The total number of shares traded during the day was 4025 in over 215 trades.
The stock hit an intraday high of Rs. 252.2 and intraday low of 248.3. The net turnover during the day was Rs. 1005409.