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IVRCL rallies 32.5% in two sessions

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Capital Market
Last Updated : Dec 22 2017 | 10:50 AM IST

IVRCL surged 10.5% to Rs 5.58 at 10:34 IST on BSE, with the stock extending Thursday's rally triggered by the company entering into pacts to sell its entire stake in two subsidiaries.

Meanwhile, the S&P BSE Sensex was up 152.12 points or 0.45% at 33,908.40.

On the BSE, 12.88 lakh shares were traded on the counter so far as against the average daily volumes of 2.61 lakh shares in the past one quarter. The stock had hit a high of Rs 5.80 and a low of Rs 5.14 so far during the day. The stock had hit a 52-week high of Rs 7.42 on 28 July 2017 and a 52-week low of Rs 4 on 5 October 2017.

The small-cap company has equity capital of Rs 156.58 crore. Face value per share is Rs 2.

Shares of IVRCL have rallied 32.54% in two trading sessions to its ruling market price, from its closing of Rs 4.21 on 20 December 2017, after the company announced after market hours on 20 December 2017 that it has entered into share purchase agreements with Cube Highways and Infrastructure Pte (Cube) for sale of its entire stake in two subsidiaries. The stock surged by the maximum permissible level of 20% to settle at Rs 5.05 yesterday, 21 December 2017.

IVRCL said it has entered into share purchase agreements with Cube for sale of the entire stake in two subsidiary companies viz. Salem Tollways (STL) and Kumarapalayam Tollways (KTL). The value of IVRCL's stake in STL and KTL shall be computed on the basis of enterprise value of Rs 342.95 crore for STL and Rs 383.23 crore for KTL, subject to adjustments on account of financial indebtedness and working capital and expenses for upcoming major maintenance of each of the project. The expected date of completion of sale is before September 2018 quarter.

IVRCL reported net loss of Rs 280.23 crore in Q2 September 2017 as against net loss of Rs 354.47 crore in Q2 September 2016. Net sales declined 19.4% to Rs 404.22 crore in Q2 September 2017 over Q2 September 2016.

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IVRCL is a leading engineering, procurement, & construction (EPC) and Infrastructure company.

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First Published: Dec 22 2017 | 10:31 AM IST

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