Highway developer Dilip Buildcon Ltd. on Monday said its board has approved a proposal to divest equity stake in wholly-owned subsidiaries.
The Dilip Buildcon board has approved the proposal for divestment, either partly or wholly, equity stake of the company in five Build-Operate-Transfer (Hybrid Annuity Model) projects, an exchange filing stated.
The projects are DBL Mangloor Highways Pvt. Ltd., DBL Sangli Borgaon Highways Pvt. Ltd., DBL Borgaon Watambare Highways Pvt. Ltd., DBL Mangalweda Solapur Highways Pvt. Ltd. and DBL Chandikhole Bhadrak Highways Pvt. Ltd.,
These projects are wholly owned subsidiaries of the company formed in the nature of special purpose vehicles to one or more potential investors, it said.
The approval was given in the board meeting held on Monday, the filing stated.
The board approved "dilution of shareholding percentage in the SPVs in such a manner that the company may cease to exercise control over the said SPVs including further issue of share capital...to the investor by the said SPVs, in a phased manner over a period of time," the filing said.
On Monday, Dilip Buildcon shares rose 4.47 percent to Rs 372.10 apiece on the BSE while the benchmark Sensex gained 2.16 percent to end the day at 37,494.12 points.
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