Ashoka Buildcon Ltd. has announced a significant development involving its wholly-owned subsidiary, Viva Highways Ltd. (VHL), which has successfully monetised its land holdings in Hinjewadi, Pune. This strategic move has propelled VHL’s real estate portfolio to a substantial valuation of ₹453 crore, marking a notable achievement for the company.
The land deal is part of Ashoka Buildcon’s broader strategy to optimise its asset portfolio and capitalise on high-value real estate opportunities. Hinjewadi, a rapidly developing area in Pune known for its IT hubs and infrastructure growth, has proved to be a lucrative asset for VHL, underscoring the region’s real estate potential.
In related financial updates, Ashoka Buildcon’s credit rating for its unlisted material subsidiary, Ashoka Concessions Ltd. (ACL), was recently withdrawn by ICRA Ltd. The decision, effective as of August 31, was attributed to ACL’s lack of outstanding debt or active banking credit facilities, reflecting a shift in its financial structure. Additionally, Ashoka Buildcon has made headlines with its recent issuance of Commercial Papers amounting to ₹50 crore, which were listed on the Bombay Stock Exchange (BSE) as of September 2. This issuance, sanctioned by the board on May 22, carries an interest rate of 8.35% and is set to mature on November 26. The successful listing reflects investor confidence and the company’s robust financial management.
The company’s stock performance has mirrored its positive financial activities, closing 12.99% higher at ₹267.43 per share. This uptick contrasts with a modest 0.21% decline in the NSE Nifty 50 index. Notably, Ashoka Buildcon’s stock has surged by 137.72% year-to-date and 92.05% over the past 12 months, highlighting its impressive market performance. This series of developments showcases Ashoka Buildcon’s strategic asset management and financial acumen, reinforcing its position in the infrastructure and real estate sectors.
