Shares of one of the leading infrastructure companies gained 8.6% to a 52-week high price of ₹ 420.85 apiece after the company sold 12 road assets to Highways Infrastructure Trust for over ₹9,000 crore.
With a market capitalization of ₹ 10,319 crore, PNC Infratech Ltd belongs to the small-cap category of stocks. On the second half of the trading day, the company shares were quoted at ₹ 402.75 apiece, up 3.94 percent on the exchange.
PNC Infratech Limited and its subsidiary PNC Infratech Limited have executed definitive agreements with KKK-backed Highways Infrastructure Trust (HIT), to divest 12 of the Company’s road assets, which comprises 11 National Highway (NH) Hybrid Annuity mode (HAM) assets and 1 State Highway BOT Toll asset with approximately 3,800 lanes in the state of Uttar Pradesh, Madhya Pradesh, Karnataka and Rajasthan.
The Enterprise Value of the Transaction is ₹ 9,005.7 Crores together with the earn-outs and is subject to any adjustments as stipulated in the definitive agreements translating to an equity value of ₹2,902 Crores (including cash) on invested equity of ₹1,740 Crores.
Out of the 12 projects, 10 projects are currently operational and the remaining two projects are under construction, which will be acquired post commencement of operations.
The company’s revenues increased by 6.5 percent year on year from ₹ 1,795 crore in Q2FY23 to ₹ 1,911 crore in Q2FY24, while net profit increased by 12 percent from ₹ 132 crore to ₹ 148 crore.
PNC Infratech shares have gained 15 percent in the last six months and 22 percent in a year.
PNC Infratech Limited is engaged in the business of infrastructure development, construction, and management companies in the country.
The company undertakes infrastructure projects, including highways, bridges, flyovers, power transmission lines and towers, airport runways, industrial area development, and other infrastructure activities. The Company has successfully executed more than 90 major infrastructure projects across the country with over 60 projects in the roads and highways sector.
The order book as of September 30, 2023, stands at over ₹. 17,800 crore, which includes contracts under execution. Additionally, there is a contract worth ₹. 4,412 crores, not yet incorporated into the existing order book.
In H1FY24, the company received over 69% of its revenue from road construction, followed by 20 % from water supply projects and the remaining 11% from Toll/Annuity collection.
Written by Omkar Chitnis
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