Ashoka Buildcon acquires 60% stake in Ashoka Bettadahalli Shivamogga Road; Stock under pressure

This transaction is a purely commercial transaction that will help the Company in attaining financial closure and availing bank financing for ABSRPL.

Sep 24, 2021 01:09 IST India Infoline News Service

Ashoka Buildcon Limited has acquired a 60% stake in the equity share capital of Ashoka Bettadahalli Shivamogga Road Private Limited (ABSRPL) viz., 30000 equity shares of Rs10 each for an aggregate consideration of Rs3 lakh.

ABSRPL was a step-down subsidiary of the Company prior to the abovementioned acquisition. It executes the Project awarded by NHAl viz. Four Lanning of Tumkur - Shivamogga Section from Ch.170+415 km. to Ch.226+750 km., Bettadahalli - Shivamogga Section of NH-206 on Hybrid Annuity mode under Bharatmala Pariyojana in the State of Karnataka (Package IV) awarded by National Highways Authority of India (NHAI).

The Project was awarded in March 2019. The total estimated cost of the Project is Rs1157.22cr. The SPV is in process of completing its financial closure post signing of Concession Agreement.

“This transaction is a purely commercial transaction which will help the Company in attaining financial closure and availing bank financing for ABSRPL. The transaction is at arm's length. The shares are acquired by the Company in a single tranche and the Company shall have full ownership and the title to all of the said shares in ABSRPL,” company said in a filing on Thursday.

At around 1.45 pm, Ashoka Buildcon Ltd was trading at Rs97.80 per piece down by Rs1.6 or 1.61% from its previous closing of Rs99.40 per piece on the BSE.

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