Hyderabad-headquartered infrastructure firm NCC Ltd on March 31 announced that it is selling its urban infrastructure arm in Visakhapatnam, NCC Vizag Urban Infrastructure Ltd, to Bengaluru-based GRPL Housing Pvt Ltd for around Rs 200 crore.
GRPL Housing is part of the Bengaluru-based Gardencity Realty group.
NCC informed the bourses after trading hours on March 31 that it has entered into a share purchase agreement with GRPL Housing to sell and transfer its entire shareholding in NCC Vizag Urban Infrastructure, subject to regulatory approvals.
On completion of the transaction in terms of the share purchase agreement, NCC will transfer its entire shareholding in NCC Vizag Urban Infrastructure, which will cease to be a subsidiary.
NCC said the sale is likely to be completed by end of the day on March 31 subject to requisite approvals.
The total consideration payable to NCC is Rs 199.5 crore, which will be paid in four instalments. The first payment of Rs 47.5 crore will be paid on March 31, the second instalment of Rs 52.25 crore on September 30, the third instalment of Rs 52.25 crore on December 31 and the last instalment of Rs 47.5 crore will be paid on March 31 next year.
NCC Vizag Urban Infrastructure, a subsidiary of NCC, had in March 2007 entered into a Development Agreement with Andhra Pradesh Housing Board (APHB) to design, plan, finance and market, develop the necessary infrastructure, provide necessary services, operate and maintain the infrastructure, administer and manage the project.
However, owing to various reasons, the project did not commence and the subsidiary company proposed various options to the Municipal Administration and Urban Development Department of Andhra Pradesh for implementation of the housing development scheme.