Ashoka Buildcon shares climb 7% as firm buys stake in GVR Ashoka Chennai

Shares of Ashoka Buildcon Limited surged nearly 7% today after the civil construction firm inked a share purchase agreement to buy 50% stake in GVR Ashoka Chennai ORR Limited (CORR) for Rs 185 crore.

Ashoka Buildcon shares gained 6.69% to Rs 155.30 against the previous close of Rs 145.55 on BSE. Market cap of Ashoka Buildcon rose to Rs 4345.60 crore. Total 0.76 lakh shares changed hands amounting to a turnover of Rs 1.13 crore. ,

Ashoka Buildcon shares have gained 93 per cent in a year and risen 13 percent since the beginning of this year.

The stock rose to a 52-week high of Rs 195.55 on February 7, 2024 and fell to a 52-week low of Rs 71.30 on March 29, 2023.

The Ashoka Buildcon stock is trading neither in the oversold nor in the overbought zone, signals the relative strength index (RSI) of Ashoka Buildcon which stands at 31.6. Ashoka Buildcon shares are trading higher than the 100 day, 150 day, 200 day and lower than the 5 day, 10 day, 20 day, 30 day and 50 day moving averages.

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

“Ashoka Buildcon Limited (the Company) has 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, constituting 50% of the share capital of CORR, for a consideration of Rs 185,00,00,000/- (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,” said Ashoka Buildcon.

“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,” the company added.