Shares of Ramky Infrastructure (BSE: 533262; NSE: RAMKY), saw a surge in their prices today (17th September).
The stock closed yesterday at Rs. 54.05. At 09:24 a.m. today, it touched an intra-day high of Rs. 63.60. That is a jump of 16.37%! The share was trading between a low of Rs. 56.80 and a high of Rs. 63.60. The rise in their share price comes on the back of a drop in prices during the previous trading day.
Why did it see the sudden jump?
Earlier today, rumors of The Ajay Piramal Group being in pole position to purchase 3 of Ramky’s infrastructure projects surfaced. The 3 projects in question are:
- Ramky Eslamex Hyderabad Ring Road;
- Sehore Kosmi Tollways, and
- NAM Expressway
Ramky entirely owns Ramky Eslamex and Sehore Kosmi, and has a 50% stake in NAM Expressway.
Having a look at Ramky’s Balance Sheet,
We can expect that the money raised from the sale of these assets, will likely be used to pare a portion of Ramky’s debt.
At 2:30 p.m. today, Ramky Infrastructure made a clarification to the BSE regarding the rumor. They state that they had informed the BSE through prior intimations, of their intentions to sell their road assets. The sale would be to “ease their operational concerns”; we can take that to mean that proceeds from the sale would very likely be used to reduce their debts. The company also vehemently states that any discussions regarding sale of the assets, are at a preliminary stage, and that no decisions have been made yet.
As of end-of-day 17th September, shares of Ramky Infrastructure closed at Rs. 57.60, 6.57% up from the previous day’s closing price.
Disclosure:
We do not hold any positions on Ramky Infrastructure.
