has entered into a share purchase agreement dated August 16, 2019, with Cube Highways and Infrastructure III Pte. Ltd. (the "Investor") for KNR Shankarampet Projects Private Limited (hereinafter referred to as the "SPV").
Pursuant to which the Company will, in a phased manner, sell to the Investor its entire shareholding in the SPY, subject to the shareholding transfer restrictions set out in the concession agreement executed between National Highway Authority of India and the SPY and subject to various regulatory and lender approvals, the company said in the filing.
The transaction is contemplated to be completed in two stages, with the first stage scheduled to be completed after the achievement of the Commercial Operation Date (the "COD") as per Concession Agreement and the second stage scheduled to be completed after the expiry of mandatory lock-in period as per the Concession Agreement.
The sale is for one HAM project, which is at different stages of pre-construction. The company is expected to invest Rs53.16cr (in form of equity & Sub debt) against which the company is expected to receive a total of Rs95.79cr through this transaction, which may undergo some changes at the time of COD, the company added.
The company’s net profit declined 40.76% to Rs42.89cr in the quarter ended June 2019 as against Rs72.40cr during the previous quarter ended June 2018.
KNR Constructions Ltd is currently trading at Rs231.40, down by Rs6.75 or 2.83% from its previous closing of Rs238.15 on the BSE.