NCC shares rise 10% as firm announces sale of subsidiary for Rs 200 crore
The Hyderabad headquartered infrastructure firm NCC announced to sell its urban infra arm in Visakhapatnam, NCC Vizag Urban Infrastructure Ltd, to Bengaluru-based GRPL Housing for around Rs 200 crore.
By Pawan Nahar, ETMarkets.com |
BCCL - Non Copyright
New Delhi: NCC shares advanced as much as 10 per cent during early trade on Friday after the company announced sale of its subsidiary.
The Hyderabad headquartered infrastructure firm NCC announced to sell its urban infra arm in Visakhapatnam, NCC Vizag Urban Infrastructure Ltd, to Bengaluru-based GRPL Housing for around Rs 200 crore.
GRPL Housing is part of the Bengaluru-based Gardencity Realty group. NCC announced the deal after the trading hours on Thursday, which is subject to regulatory approvals.
Following the development, shares of NCC gained over 10 per cent to Rs 64.45 before trading at Rs 63.95 at 10.25 am. The scrip had settled at Rs 58.55 on Thursday.
On completion of the transaction in terms of the share purchase agreement, NCC will transfer its entire shareholding in NCC Vizag Urban Infrastructure, which will cease to be a subsidiary.
NCC will receive a total amount of Rs 1995.5 crore in four tranches. The first tranche of Rs 47.5 crore will be paid on March 31, whereas the second installment of Rs 52.25 crore will be paid on September 30.
The third tranche of Rs 52.25 crore is payable on December 31, whereas 31 March 2023 will mark the completion of the deal with the payment of the fourth tranche of Rs 47.5 crore.
The Hyderabad headquartered infrastructure firm NCC announced to sell its urban infra arm in Visakhapatnam, NCC Vizag Urban Infrastructure Ltd, to Bengaluru-based GRPL Housing for around Rs 200 crore.
GRPL Housing is part of the Bengaluru-based Gardencity Realty group. NCC announced the deal after the trading hours on Thursday, which is subject to regulatory approvals.
Following the development, shares of NCC gained over 10 per cent to Rs 64.45 before trading at Rs 63.95 at 10.25 am. The scrip had settled at Rs 58.55 on Thursday.
On completion of the transaction in terms of the share purchase agreement, NCC will transfer its entire shareholding in NCC Vizag Urban Infrastructure, which will cease to be a subsidiary.
NCC will receive a total amount of Rs 1995.5 crore in four tranches. The first tranche of Rs 47.5 crore will be paid on March 31, whereas the second installment of Rs 52.25 crore will be paid on September 30.
ADVERTISEMENT
The third tranche of Rs 52.25 crore is payable on December 31, whereas 31 March 2023 will mark the completion of the deal with the payment of the fourth tranche of Rs 47.5 crore.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
