Shares of IVRCL rallied as much as 20 per cent in Thursday's trade as the company has entered into a share purchase agreement with Singapore-based Cube Highways and Infrastructure pte. Ltd for the sale of 100 per cent equity in two subsidiary companies that operate two tollways in Tamil Nadu.
The agreement involves 100 per cent stake sale in Salem Tollways and Kumarapalayam Tollways and the transaction is expected to be completed before September 2018, subject mandatory approvals and lender of these tollways and IVRCL.
Following a strong open at Rs 4.60 against the previous close of Rs 4.21, the scrip touched an intraday high of Rs 5.05 and a low of Rs 4.60. In terms of equity volume, 22 lakh shares exchanged hands in the evening trade.
The company shares ended higher by 19.95 per cent at Rs 5.05 on the BSE. On the NSE, the stock was up 19.05 per cent at Rs 5.
In October, the consortium of lenders, which had approved a Corporate Debt Restructure package for IVRCL, has decided to exit the CDR mechanism. The decision to back out from the debt restructure comes after the CDR empowered group held a meeting with the lenders. The empowered group approved the exit of the lenders from the CDR package.
IVRCL had posted a huge loss of ₹244.74 crore for the first quarter ended June 30, 2017, against a loss of ₹153.58 crore for the corresponding quarter last year. The company posted revenues of ₹522.6 crore for the quarter against ₹452.69 crore for the same period a year ago.