IVRCL rises 20%

IVRCL Ltd hit the 20% circuit today at Rs.5.05. The stock’s 52-week high and low stands at Rs.7.42 and Rs.4 respectively.

The stock has surged on news that is has signed agreements with Cube Highways and Infrastructure Pte Ltd. of Singapore to sell its entire 100% stake, valued at Rs.726 crore, in two subsidiaries - – Salem Tollways Ltd (STL) and Kumarapalayam Tollways Ltd (KTL).

The transaction is expected to be completed by September 2018, subject to approval from the authorities concerned and lenders of the two subsidiaries and IVRCL.

The value of IVRCL’s 100% stake is STL and KTL was Rs.383 crore and Rs.343 crore respectively. This is on the basis of the enterprise value of the respective companies subject to adjustments of financial indebtedness and working capital and expenses for upcoming major maintenance of each of the project.