Shares of Ashoka Buildcon Limited (ABL) surged by 10% when it entered into a share purchase agreement (SPA) with GVR Infra Projects Limited (GIPL) and GVR Ashoka Chennai ORR Limited (CORR) for the acquisition of 9,45,00,000 equity shares held by GIPL in CORR.

This constitutes 50% of the share capital of CORR, for a consideration of Rs 185 crore (Rupees One Hundred Eighty-Five Crore only) subject to terms as agreed under the Share Purchase Agreement (SPA) as per the terms of the SPA.

The approvals of the Lenders of CORR and Government of Tamil Nadu, Authority awarding the Project viz. Tamil Nadu Road Development Corporation Limited, have already been obtained by the company.

Post-acquisition of 50% equity shares held by GIPL, CORR would become wholly-owned subsidiary of the company with effect from the date of acquisition of all 9,45,00,000 equity Shares of Rs.10 each are fully paid, constituting 50% of the shareholding of CORR.

GVR Ashoka Chennai ORR Limited was incorporated on July 23, 2013, in Chennai, India, for the execution of the Project. To carry on operations as a Special Purpose Vehicle (SPV) for the Development of Chennai Outer Ring Road Phase II from Nemilicheri in NH 205 to Minjur in Thiruvottiyur – Ponneri – Panchetti (TPP) Road including all Project Assets, project facilities, and its subsequent development and augmentation on Design, Build, Finance, Operate and Transfer (DBFOT) Annuity basis at Chennai, in the State of Tamil Nadu, India.

The company already holds 50% equity shares in Target entity and post-acquisition of balance 50% equity shares, the Target Entity would become a wholly owned subsidiary of the company.

CORR had a total income of Rs 184.83 crore and a net worth of Rs 397.55 crore on the basis of audited financial statements of FY 2023.

At 3:30 pm, the shares of Ashoka Buildcon closed 11.75% higher at Rs 163.15 on NSE.