- 19 Dec 2022
- ICICIdirect Research
ASHOKA BUILDCON SELLS STAKE IN JAORA-NAYAGAON TOLL ROAD COMPANY
ASHOKA - 205 Change: -0.60 (-0.29 %)Ashoka Buildcon, Ashoka Concessions and Viva Highways have entered into a share purchase agreement with National Investment & Infrastructure Fund Ltd and Jaora Nayagaon Toll Road Co. Pvt Ltd (JTCL) for sale of 28.7 crore equity shares in JTCL for a consideration of Rs 691 crore. The current shareholding of Ashoka Concessions and Viva Highways is 37.7% and 10.3%, respectively, and the completion of the above transaction is subject to certain conditions including acquisition of balance equity shares held by other shareholders and receipt of lenders approval and the Madhya Pradesh Road Development Corporationn Ltd.
The timeline (expected deal closure by FY23-end) and consideration for Jaora Nayagaon Toll Road is largely in line with the company's expectations. Nevertheless, monetisation of assets are in line with the company's strategy to free up its tied up capital and become asset free in future.