Ashoka Buildcon to buy controlling stake in MP toll project

Written By Unknown on Selasa, 10 Maret 2015 | 15.45

Ashoka Buildcon, which currently owns 37.7 percent stake in the toll project, is planning to buy 36 percent from existing investors like Srei Infra & IFCI for Rs 900 crore.

Ashoka Buildcon  is planning a large-scale expansion drive. The company is looking to buy out a controlling stake in Jaora Nayagaon Toll Project in Madhya Pradesh, sources told CNBC-TV18.

Ashoka Buildcon, which currently owns 37.7 percent stake in the toll project, is planning to buy 36 percent from existing investors like Srei Infra  & IFCI  for Rs 900 crore. The Jaora Nayagaon Toll Project is owned by consortium of four developers, wherein Srei Infra holds 19 percent, while PNC Infra & SPML hold 8.5 percent stake each. The fourth company IFCI sold 26 percent stake in the project to SBI Macquarie Infra.

Moreover, sources say that Ashoka Buildcon is planning to raise nearly Rs 700 crore via qualified institutional placement (QIP) this month. The company is likely to use these proceeds to fund new BOT projects. The QIP will ne managed by IDFC & Axis Capital, sources added. Ashoka Buildcon is yet to reply to CNBC-TV18's query.

Ashoka Buildcon stock price

On March 10, 2015, at 14:07 hrs Ashoka Buildcon was quoting at Rs 173.00, down Rs 7.7, or 4.26 percent. The 52-week high of the share was Rs 194.00 and the 52-week low was Rs 65.00.


The company's trailing 12-month (TTM) EPS was at Rs 6.64 per share as per the quarter ended December 2014. The stock's price-to-earnings (P/E) ratio was 26.05. The latest book value of the company is Rs 58.85 per share. At current value, the price-to-book value of the company is 2.94.


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