Sadbhav Eng's volatile day

Sadbhav Engineering is having a tumultuous run today. The stock opened with a gain of 2% at Rs.262 and then went on to hit an intraday high at Rs.264, up over 3% at which level profit booking came in. The stock went down over 4% to Rs.246, and is now currently in the red.

The market reacted positively to the news of its Board approving sale of its entire stake in 9 SPVs to IndInfravit Trust. This includes seven toll roads and two annuity roads, with total 2,619 lane kms in Gujarat, Karnataka, Maharashtra, Rajasthan and Telangana, some of India’s most economically vibrant states.

The transaction values 100% of the Roads Portfolio at an enterprise value of approximately Rs.6,610 crore.  

In an TV interview post this deal, the company said the consolidated debt of the group stands at Rs.11,00 crore and it will pay off Rs.5600 through this transaction.