Dilip Buildcon Limited (DBL), a major player in the infrastructure space, is likely to enter into a non-binding agreement with a Gujarat-based company to sell a portion of its road assets, sources told Zeebiz.

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The sources further revealed that negotiations between the two companies have begun and a formal announcement will be made in the next three months.

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On being asked what the value of the deal would be and how the company is planning to utilized the fresh funds, sources added that it would be nearly Rs 2,000 crore worth deal and there is a chance for preferential allotment.

Analysts believe that Dilip Buildcon would utilize the funds to reduce its debt burden.

On the other hand, Dilip Buildcon refused to respond when asked about this deal. “We will not respond based on the market rumours,” said the company to Zeebiz.

According to information available on the BSE website, Dilip Buildcon has a market capitalization of Rs 10,618 crore.

Commenting on the share price of the Buildcon, market expert Kunal said that the stock it has gained considerably in the recent times.

“There has been a rise in the stock price in the last two to three weeks. Since has crossed the Rs 700-level after a stiff resistance. Investors can trade with stop loss below Rs 700 and Rs 800 as possible targe,” Kunal added.