Shares of PNC Infratech Ltd. jumped over 10% to a record high on Tuesday after it inked a deal to divest 12 of the its road assets.
The company along with its subsidiary PNC Infra Holdings Ltd. have executed definitive agreements with Highways Infrastructure Trust to divest assets comprises of 11 national highway hybrid annuity mode assets and one state highway BOT toll asset with approximately 3,800 lane kilometres in Uttar Pradesh, Madhya Pradesh, Karnataka and Rajasthan, according to an exchange filing.
The enterprise value of the transaction is Rs 9,005.7 crore together with the earn outs and is subject to any adjustments as stipulated in the definitive agreements translating to an equity value of Rs 2,902 crore on invested equity of Rs 1,740 crore, the exchange filing said.
Shares of the company jumped 10.60% to Rs 427.90 apiece before paring gains to trade 3.33% higher at Rs 399.80 apiece as of 10:12 a.m. This compares to a 0.04% decline in the NSE Nifty 50 Index.
It has risen 23.98% in the last twelve months. Total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 78.06, indicating that the stock may be overbought.
Out of 19 analysts tracking the company, 18 maintain a 'buy' rating and one recommends a 'hold' according to Bloomberg data. The average 12-month consensus price target implies an upside of 11.7%.
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