Ashoka Buildcon enters into SPA with IIF for acquiring 49% stake in SPV

Ashoka Buildcon Limited ("the Company") has entered into a share purchase agreement(SPA) with India Infrastructure Fund (IIF) for purchasing directly or through its subsidiary, 49% stake (i.e.1,27,95,399 equity shares of Rs.10/- each) held by IIF in Ashoka Highways (Bhandara) Limited ("AHBL / SPV") along with Zero Interest Shareholders Loan for an aggregate consideration of Rs.35,98,00,000/- (Rupees Thirty Five Crore and Ninety Eight Lakh only).

The Company already holds 09 shares in AHBL. Ashoka Concessions Limited, a subsidiary of the Company holds 1,33,17,653 equity shares of Rs.10/- each, i.e. 51% of the issued, subscribed and paid-up capital of AHBL. Post completion of this transaction, the Company along with subsidiary/ies would hold 100% stake in AHBL.

The completion of the above transaction is subject to receipt of the approvals from National Highways Authority of India (NHAI) and if required, from Lenders.

AHBL executes the Project awarded by NHAI viz. 'To carry on the business of Construction, Operation and Maintenance of Chattisgarh / Maharashtra Border - Wainganga Bridge Section from Km. 405.000 to Km. 485.000 of NH-6 in the state of Chattisgarh and Maharashtra under NHDP phase IIIA on BOT basis.'

Shares of ASHOKA BUILDCON LTD. was last trading in BSE at Rs.112.3 as compared to the previous close of Rs. 110.65. The total number of shares traded during the day was 290726 in over 2003 trades.

The stock hit an intraday high of Rs. 114.1 and intraday low of 110. The net turnover during the day was Rs. 32722651.

Source : Equity Bulls

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