- 17 Oct 2022
- ICICIdirect Research
KNR Constructions sells 100% stake in HAM projectKNRCON - 251 Change: -2.60 (-1.03 %)
KNR Constructions has transferred its 100% equity stake in subsidiary company KNR Srirangam Infra Pvt Ltd to Cube Highways and Infrastructure III Pte. Ltd. The company has invested Rs 78.36 crore (in the form of equity & sub debt) for which it has received Rs 131.15 crore against transfer of 100% equity stake and repayment of entire sub debt through current transaction. In addition to the above, the company shall be eligible to receive an additional consideration up to an amount of Rs 15.40 crore subject to receipt of certain approvals form NHAI.
During Q1FY23 earnings concall, the management had indicated towards transfer of 100% stake in KNR Srirangam Infra Pvt Ltd to Cube Highways in the near term (with the completion of project execution). The realised amount is in line with the expectations and is likely to aid the company in debt reduction (aiming to achieve debt free status by FY23-end; gross debt:Rs 124.8 crore at Q1 FY23-end)