- 21 Oct 2022
- ICICIdirect Research
KNR Constructions transfers remaining 51% stake in two HAM projectsKNRCON - 252 Change: -2.35 (-0.92 %)
KNR Constructions has transferred its remaining 51% equity stake of its two subsidiary companies to Cube Highways and Infrastructure III Pte. Ltd. In the KNR Shankarampet Projects Pvt Ltd, the company has invested Rs 126.8 crore for which it has received of Rs 108.5 crore (earlier for 49% stake) and now Rs 46.09 crore (against transfer of 51% stake) Similarly, it has invested Rs 160.2 crores in KNR Tirumala Infra Pvt Ltd for which it has received Rs 136.8 crore (earlier for 49% stake) and now Rs 68.1 crore (against transfer of 51% stake). In addition, it is eligible to receive an additional consideration up to an amount of Rs18.6 crore subject to receipt of certain approvals from NHAI in both the projects.
Deal with Cube Highways for these two projects was contemplated to be completed in two stages, the first stage of transfer of 49% equity stake was completed on December 31, 2021 and now the second stage of transfer for remaining 51% equity stake has been completed on October 20, 2022. Nevertheless, the realised amount is inline with the expectations and is likely to aid company in debt reduction (targeting to achieve debt free status by FY23-end; gross debt:Rs 124.8 crore at Q1 FY23-end).