IVRCL was locked in 20 percent upper circuit at Rs 5.05 per share after the company signed agreement with Cube Highways for entire stake sale in two subsidiaries.
There were pending buy orders of 718,182 shares, with no sellers available, at 11:51 hours IST.
"The company has entered into a share purchase agreements with Cube Highways and Infrastructure Pte Ltd for sale of the entire stake in two subsidiary companies viz., Salem Tollways Ltd (STL) and Kumarapalayam Tollways Ltd (KTL)," the infrastructure company said in its filing.
"The value of IVRCL's stake in STL and KTL shall be computed on the basis of enterprise value of Rs 342.95 crore and Rs 382.23 crore, subject to adjustments on account of financial indebtedness and working capital and expenses for upcoming major maintenance of each of the project," the company added.
The agreement was signed on December 19 and the expected timeframe date for completion of the sale/disposal is before September quarter 2018, IVRCL said.
However, the completion of transaction and payment of consideration is contingent upon fulfilment of certain customary approvals from all concerned authorities and lenders of STL, KTL and IVRCL.
While, KTL operates on 48.5 km Kumarapalayam-Chengapalli stretch on NH 544, STL operates on 53.5 km stretch on the same highway between Salem and Kumarapalayam in Tamil Nadu.
Cube Highways and Infrastructure Pte Ltd (Cube Highways) is a Singapore-based company investing in road and highway projects.
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