Ashoka Buildcon's shares rises after receiving a Rs 775 crore order
The stock gained as much as 4.2 percent in early trading, reaching an intraday high of Rs 91.85 per share.
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Ashoka Buildcon Ltd (ABL) shares rose more than 4% on December 29 after the business announced a Rs 755 crore order from Madhya Pradesh PoorvKshetra Vidyut Vitaran (MPPKVVCL).
The stock gained as much as 4.2 percent in early trading, reaching an intraday high of Rs 91.85 per share. The stock was trading at Rs 89.55 on the BSE at 9:45 a.m., up 1.6 percent from its previous close. This was the fourth session in a row that the stock traded higher, and it gained more than 16 percent during that time. It is down 10.5 percent year to date.
The order is for supply, installation, testing and commissioning of new 11 KV lines, LT line on AB cable, distribution transformer substation and supporting works such as DPs, TPs, Crossing etc. for separation of 11 KV mix feeders & mix DTRs under revamped reforms-based and results-linked distribution sector (Package-06) in Balaghat circle, Satna circle and Rewa circle of MPPKVVCL, Jabalpur Company area.
Ashoka Buildcon recently agreed to sell 74 percent of its economic interest in the Jaora Nayagaon (JTCL) toll project to NIIF. The transaction's equity value will be Rs 690 crore (100% share). After deducting the Rs 180 crore loan from JTCL to the company/Ashoka Concessions Ltd (ACL), ABL's net cash inflow will be Rs 330 crore.
ABL has previously agreed to sell five BOT projects to KKR for Rs 1,340 crore. It will utilise Rs 1,200 crore of this to repay SBI-Macquarie (SBI-M), which had invested in ACL. ABL has also agreed to sell the Chennai ORR annuity project to NIIF for a total financial value of Rs 690 crore, with Rs 450 crore going to ABL. These transactions are expected to be completed before the end of FY23. The completion of these deals will simplify the company's corporate structure and result in significant deleveraging.
"For the past few years, the BOT share sale has been a huge overhang on the ABL stock. The proposed transactions will de-lever the balance sheet, allow management to focus on the EPC business, and lower investor risk perception "Nuvama study indicates.
