Shares of Ashoka Buildcon surged by nearly 7 percent after the company announced its acquisition of an additional 34 percent stake in Ashoka Concessions Ltd (ACL) for Rs 1,526 crore. This acquisition will make ACL a wholly-owned subsidiary of Ashoka Buildcon.
As of 12:50 PM, shares of Ashoka Buildcon were trading almost 3 percent higher at Rs 240, marking their fourth consecutive session of gains. The stock has risen by an impressive 75 percent year-to-date, significantly outperforming the Nifty 50’s 11 percent gain over the same period. After declines in August and September, Ashoka Buildcon shares have rebounded, climbing nearly 5 percent in October.
The transaction provides an exit for investors, including Macquarie SBI Infrastructure Investments and SBI Macquarie Infrastructure Trust. With this, Ashoka Buildcon consolidates its investment in ACL, which oversees the group's Build-Operate-Transfer (BOT) and annuity highway projects.
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In conjunction, Viva Highways, a subsidiary of Ashoka Buildcon, will acquire a 26 percent equity stake in Jaora Nayagaon Toll Road Company for Rs 150 crore.
These transactions, detailed in agreements dated October 30 are subject to regulatory approvals from the lenders, NHAI, MPRDC, and the Competition Commission of India.
Ashoka Buildcon posted a 148 percent rise in standalone net profit for Q1 FY25, reaching Rs 40.8 crore compared to Rs 16.4 crore in the same quarter last year. Total income grew 22 percent year-on-year to Rs 1,900.8 crore, up from Rs 1,557.2 crore in the year-ago period.
Ashoka Buildcon, a Fortune India 500 company, develops and maintains infrastructure in India and abroad, with projects spanning roads, bridges, buildings, power, railways, and city gas distribution systems. The company serves national and state governments and operates through multiple business models, including Engineering, Procurement, and Construction (EPC), BOT, and Public-Private Partnership (PPP). With headquarters in Nashik, Maharashtra, Ashoka Buildcon has operations across Maharashtra, Madhya Pradesh, Chhattisgarh, Rajasthan, Karnataka, and Odisha.
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