KEC International, part of the diversified RPG Group, has sold the leasehold rights of its 7.63 acre land located between Thane and Navi Mumbai, to Vodafone Shared Services for Rs 72.5 crore, the company disclosed in a statement to Bombay Stock Exchange today.
“The proceeds of the money will be used to reduce overall debt of the company,” Ramesh Chandak, MD & CEO of the company said.
The land is located at Trans Thane Creek Industrial Area, near Vashi, Mumbai and the company has 95 years lease from Maharashtra Industrial Development Corporation (MIDC) and was operating a tower testing station, which was already decommissioned, the company added.
On Bombay Stock Exchange today, shares of KEC International closed at Rs 40.80, down 0.37 per cent from previous close.
Incorporated in 1945, KEC International Limited operates as an engineering, procurement, and construction company (EPC) in India and internationally. It is engaged in the power transmission and distribution; provision of design services; cable, telecom, and railway activities; water resource management; and tower manufacturing businesses.
Although the private equity action in Indian real estate sector has been muted, there have been a couple of large deals this year across income-generating developments. In February this year, Ascendas India Trust entered into a deal to acquire a portfolio of five buildings in Phoenix Infocity Pvt Ltd’s SEZ for Rs 855 crore. Kotak Realty Fund also sold Peepul Tree Properties (an IT park in Goregaon) to Tata Realty and Infrastructure Ltd and Tata Realty Initiatives Fund 1 for Rs 525 crore.