Madhucon Projects rose 5.46% to Rs 56 at 13:02 IST on BSE after the company announced the completion of the strategic sale of its majority stake in Madhucon Agra-Jaipur Expressway to Cube Highways and Infrastructure.
The announcement was made after market hours yesterday, 12 April 2016.
Meanwhile, the BSE Sensex was up 428.17 points, or 1.70%, to 25,573.76.
On BSE, so far 1.02 lakh shares were traded in the counter, compared with an average volume of 17,687 shares in the past one quarter. The stock hit a high of Rs 57.80 and a low of Rs 55.40 so far during the day. The stock hit a 52-week high of Rs 88.70 on 6 August 2015. The stock hit a 52-week low of Rs 39.10 on 26 February 2016. The stock had outperformed the market over the past one month till 12 April 2016, rising 3.81% compared with 1.73% rise in the Sensex. The scrip had, howeverm underperformed the market in past one quarter, sliding 22.03% as against Sensex's 1.88% rise.
The small-cap company has an equity capital of Rs 7.38 crore. Face value per share is Re 1.
Madhucon Projects and Cube Highways and Infrastructure signed a share purchase agreement on 21 October 2015 for Rs 248 crore. After receiving all necessary approvals the transaction was concluded on 30 March 2016 with a stake transfer of 74%.
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Divestment of the stake has assisted Madhucon Group to pare down its debt by Rs 212 crore. This is the first major strategic sale in Madhucon's highway portfolio, Madhucon Projects said in a filing.
The sale proceeds from the transaction will be used to complete the under construction infrastructure projects of the group, it added.
Net profit of Madhucon Projects declined 87.16% to Rs 3.65 crore on 72.15% decline in net sales to Rs 118.36 crore in Q3 December 2015 over Q3 December 2014.
Madhucon Projects is engaged in execution of infrastructure projects, such as construction of national highways, fly-overs, dams, tunnels, aqueducts, bridges, coal handling plants, workshops property development projects including high rise structures, hospitality and retail industry structures etc. & enjoying substantial non-fund based limits in the form of bank guarantees with banks under multiple banking arrangements.
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