Madhucon Projects shares surged as much as 8.85 per cent in the early trade on Wednesday after the company announced the completion of the strategic sale of its majority stake (74 per cent) in Madhucon Agra-Jaipur Expressway to Cube Highways and Infrastructure.
At 9.42 am, shares of Madhucon Projects were trading 6.78 per cent up at Rs 56.70. The scrip opened at Rs 56.35 and has touched a high and low of Rs 57.80 and Rs 55.40, respectively, in trade.
Later, the scrip closed 5.27 per cent up at Rs 55.90.
Madhucon and Cube Highways signed a share purchase agreement on October 21, 2015 for Rs 248 crore. After receiving all necessary approvals the transaction was concluded on March 30, 2016 with a stake transfer of 74 per cent.
In a BSE filing, the company said, “Divestment of the stake has assisted Madhucon Group to pare down its debt by 212 crore. This is the first major strategic sale in Madhucon’s Highway portfolio.”
The sale proceeds from the transaction will be used to complete the under construction infrastructure projects of the group.