PNC Infratech climbs 4% on divestment of stake in Ghaziabad-Aligarh road project

Ghaziabad Aligarh Expressway Private Limited is the concessionaire (SPV) for four laning of Ghaziabad - Aligarh section of NH-91 BOT (toll) project in Uttar Pradesh along with the other partners of SPV.


PNC Infratech shares rallied 3.6 percent intraday on May 7 following the execution of share purchase agreement for divestment of stake in Ghaziabad Aligarh road project.

In the last three months, the stock has surged 11 percent. It was trading at Rs 157, up 1.95 percent on the BSE, at 1112 hours IST.

PNC Infratech announced the execution of a share purchase agreement (SPA) for sale of 35 percent stake held by the company along with its wholly-owned subsidiary - PNC Infra Holdings Limited in Ghaziabad Aligarh Expressway Private Limited, with Cube Highways and Infrastructure Pte Ltd on May 04, 2019.

Ghaziabad Aligarh Expressway Private Limited is the concessionaire for four-laning of Ghaziabad - Aligarh section of NH-91 BOT (toll) project in Uttar Pradesh along with the other partners of SPV.

The company said the total enterprise value of the sale is Rs 1,834 crore subject to adjustments of debt and other capital and operational costs at the closing date.

The company's share of 35 percent equity translates to sale consideration of Rs 270 crore, it added.

In addition to this, PNC said it would be able to recover its outstanding EPC receivables from SPV along with certain closing adjustments, which would likely to result into total cash inflow of over Rs 300 crore.

The cash flows that would be released upon the proposed disinvestment are expected augment financial resources of company for funding its present and future projects and the proposed divestment would also reduce its overall debt by Rs 1,070 crore as of December 31, 2018, it added.

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