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IVRCL soars 20% on selling entire stake in 2 arms

NEW DELHI: Shares of IVRCL climbed 20 per cent in Thursday's trade after the company entered into a share purchase agreement with Singapore-based Cube Highways and Infrastructure for the sale of its entire stake in two subsidiaries – Salem Tollways Ltd and (STL) Kumarpalayam Tollways Ltd (KTL).

Following the announcement the stock rose 19.95 to hit a high of Rs 5.05 on BSE.

The infrastructure company told stock exchanges that the value of IVRCL's stake in STL and KTL would be computed on the basis of enterprise value of Rs 342.95 crore for STL and Rs 383.23 crore for KTL subject to adjustments on account of financial indebtedness and working capital and expenses for upcoming major maintenance of each of the project.

The Hyderabad-based company had invested Rs 178.18 crore in STL and Rs 93.85 crore in KTL as on March 31, 2017 and said that STL and KTL being separate companies did not contribute anything to IVRCL's revenues. IVRCL has debt in excess of 5,500 crore.

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