Gayatri Highways Limited has informed the Exchange about : Disclosure of execution of Securities Purchase Agreement for Sale of stake in the Associate Company pursuant to Regulation 30 of the Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015.
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Gayatri Highways Limited (GHL) has signed a Securities Purchase Agreement to sell its entire 49% stake (approximately 22.75 lakh equity shares) in associate company HKR Roadways Limited to Cube Highways and Infrastructure V PTE. Limited, along with co-seller Kotak Special Situations Fund. GHL expects to receive around Rs. 200 crore from the sale, with a potential additional Rs. 48 crore subject to Wholesale Price Index (WPI)-linked conditions. About Rs. 48 crore of the sale consideration will be retained in escrow and released only upon meeting specified conditions. GHL will also provide indemnities for stamp duty, breach of fundamental warranties, and fraud/gross negligence. HKR Roadways contributed only 0.63% (Rs. 711.65 lakhs) to GHL's net profit in FY25. The deal is expected to close by June 30, 2026, and is not a related-party transaction.
Shareholders can expect a meaningful cash inflow of around Rs. 200 crore from divesting a small, non-core associate, which should strengthen the balance sheet. However, Rs. 48 crore held in escrow plus contingent indemnity exposures (stamp duty, warranty breaches) mean actual cash realized could be lower. Overall, the deal is likely a positive but modest deleveraging event given the associate's minimal 0.63% contribution to profits.