Ashoka Buildcon Increases Stake in Viva Infrastructure with ₹4.02 Crore Rights Issue

Ashoka Buildcon Limited has informed that it has been allotted 40,02,250 equity shares of ₹10 each, aggregating to ₹4.02 crore, under a Rights Issue by its wholly-owned subsidiary, Viva Infrastructure Limited (VIL).

This allotment was finalised during a meeting held on January 4, 2025. With this new acquisition, Ashoka Buildcon now holds 81,04,500 fully-paid equity shares of ₹10 each in VIL, reaffirming its status as a wholly-owned subsidiary of the company.

About Viva Infrastructure Limited (VIL)

Incorporated on January 28, 2002, in Pune, India, Viva Infrastructure Limited operates in the infrastructure and real estate sectors. Its primary focus includes infrastructure projects such as roads, highways, tunnels, railways, ports, airports, and water management facilities. The company also engages in renewable energy generation, including wind and solar energy, and other non-conventional energy sources.

VIL specialises in Build-Own-Lease-Transfer (BOLT) infrastructure projects and acts as a developer, contractor, and consultant for various public and private sector projects. It is involved in designing, constructing, maintaining, and operating diverse infrastructure facilities.

For the financial year 2023-24, VIL recorded a total income of ₹714.38 lakh. However, its net worth stood at a negative ₹10,307.95 lakh, highlighting the challenges in its financial position. This trend of negative net worth has been consistent over the past three years:

• FY22-23: Turnover of ₹1,006.71 lakh and net worth of ₹(9,439.17) lakh.
• FY21-22: Turnover of ₹680.48 lakh and net worth of ₹(8,662.52) lakh.

Strategic Importance

The acquisition aligns with Ashoka Buildcon’s position as a leading infrastructure development company in India’s road and power sectors. By strengthening its investment in VIL, Ashoka Buildcon aims to leverage VIL’s expertise in infrastructure and real estate development. VIL’s portfolio complements Ashoka Buildcon’s core operations, potentially adding significant value in the long term.

On January 6, 2025, Ashoka Buildcon share price opened at ₹305.00, touching the day’s low at ₹296.15, as of 10:24 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.