KNR Constructions to dilute stake in three highway projects to Cube Highways.

The Board of Directors of KNR Constructions Limited, recently, approved the dilution of its entire stake in three wholly owned subsidiary highway companies to Cube Highways and Infrastructure III Pte. Ltd and affiliates.

As per the board nod, the construction company decided to dilute its stake in KNR Shankarampet Projects, KNR Srirangam Infra, and KNR Tirumala Infra subject to approval from members of the company and a nod from regulatory bodies and lenders.

The transaction will be based on the share purchase agreements entered into by KNR Constructions and its subsidiaries as per the concession agreement and Ministry of Road Transport and Highways circulars.

While the KNR Shankarmpet Project has a turnover of ₹367.77 crore and a net worth of ₹136.86 crore, KNR Srirangam has a turnover of ₹241.11 crore and a net worth of ₹98.23 crore and KNR Tirumala has a turnover of ₹425.44 crore and a net worth of ₹176.66 crore.

The approximate consideration for these projects, on completion, is expected to be ₹466 crore.

The company had entered into a share purchase agreement with Cube Highways for divestment of these three special purpose vehicles.

However, the transaction is subject to shareholding transfer restrictions set out in the concession agreement executed between the National Highways Authority of India and these step down subsidiaries, and other approvals.

The Hyderabad-based construction company commands a strong order book of ₹6,596 crore as of June end, 2021.

HBL