KNR Constructions completes disposal of 100% stake in KNR Shankarampet; stock climbs ~2%

21 Oct 2022 , 09:18 AM

KNR Constructions Limited informed that it transferred its remaining 51% equity stake in its subsidiary company i.e., KNR Shankarampet Projects Private Limited (SPV) to Cube Highways and Infrastructure III Pte. Ltd.

Since the transaction was to be completed in two parts, the first stage of transferring 49% of the equity share was completed on December 31, 2021, and the second stage of transferring the remaining 51% equity stake is completed on October 20, 2022.

The company has invested Rs126.81 crore (in the form of equity and sub-loan), for which it has received Rs108.51 crore in exchange for the transfer of 49% equity ownership and repayment of complete sub-debt on December 31, 2021. It has now received Rs46.09 crore in exchange for the transfer of the remaining 51% ownership share.

In addition to the foregoing, the company will be eligible to earn an extra payment of up to Rs4.61 crore, subject to NHAI clearance.

Cube Highways is a Singapore-based firm that invests in road and highway projects in India, as well as other key infrastructure sectors.

At around 9.26 AM, KNR Constructions was trading at Rs209.95 up by 2.17% from its previous closing of Rs205.50 on the BSE. The scrip opened at Rs208.30 and touched intraday high and low of Rs213 and Rs207.95 respectively.

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