Bharat Road Network (BRNL) rose 2.22% to Rs 29.95 after the company, along with its partners, signed a deal with Cube Highways for the sale of a 126-kilometre road project in Uttar Pradesh (UP), India.
Singapore-based Cube Highways and Infrastructure invests in road and highway projects, along with other select infrastructure sectors in India.The share purchase agreement provides for the sale of entire stake in Ghaziabad Aligarh Expressway, the special purpose vehicle (SPV) engaged in the development, operation and maintenance of a 126-kilometre toll road project from Ghaziabad to Aligarh on National Highway-34 (NH-34). The project has been granted a 24-year concession in 2011 for strengthening and widening the two-lane highway. Toll collection on this road started in June 2015.
The said transaction is being done at an enterprise value (EV) of upto Rs 1600 crore. Bharat Road Network currently holds 39% stake in this project.
The company said that the proposed transaction is subject to applicable regulatory and other approvals and certain conditions, more specifically laid down in the share purchase agreement. Therefore, expected date of completion of sale/disinvestment cannot be ascertained at this stage.
The sale reaffirms commitment of BRNL to reduce the debt and also capitalise on the growth opportunities in the highways sector.
Speaking on the development, Bajrang Kumar Choudhary, managing director, BRNL, said: "We continue to explore opportunities for value creation through our portfolio realignment. We remain focused towards optimizing value through such strategic exits and are equally committed to raise resources to capitalise on the current and upcoming primary and secondary market opportunities in the highway sector."
BRNL is a road build-operate-transfer (BOT) company in India, focused on development, implementation, operation and maintenance of roads and highways projects. The company project portfolio worth Rs 7000 crore consisting of six operational BOT projects, covering 2,095 lane kilometres across six states in India.
The company's consolidated net profit declined 87.98% to Rs 1.66 crore on a 16.96% fall in net sales to Rs 64.33 crore in Q3 FY21 over Q3 FY20.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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