Ashoka Buildcon acquires balance 40% stake in ABSRPL; Stock up 1%

The object of the acquisition is to consolidate the road infrastructure business of the Company.

Sep 30, 2021 10:09 IST India Infoline News Service

Ashoka Buildcon Ltd has informed that it has further acquired balance 40% stake in equity share capital of Ashoka Bettadahalli Shivamogga Road Private Limited ('ABSRPL') viz., 20,000 equity shares of Rs10/- each for an aggregate consideration of Rs2lakh (Rupees Two Lakh only).

Further to inform that ABSRPL is now a wholly owned subsidiary of the Company post the abovementioned acquisition, said company.

ABSRPL executes the Project awarded by NHAI 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 ("NHAl").

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. The turnover for FY 2020-2 1 is Rs0.48cr.

The object of the acquisition is to consolidate the road infrastructure business of the Company, which is the core competence of the Company. The Company now holds 100% shares in ABSRPL.

At around 10:03 AM, Ashoka Buildcon was trading at Rs98.70 per piece up by Rs1.3 or 1.33% on Sensex.

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