Sadbhav Infrastructure’s shares rallied over 7 percent intraday on Thursday over proposed stake sale of nine of its operational road projects.

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At 1 pm, the shares rose 0.40 percent to Rs 37.50 per share on the NSE while on an intraday basis, the share price rallied 9.77 percent to Rs 41.

The company in a BSE regulatory filing on Wednesday said that the board of IndInfravit Trust has approved the preferential allotment of up to 18.88 crore units at Rs 116.75 per unit aggregating to Rs 2,204.82 crore.

The board has also approved a preferential issue of up to 6.21 crore units at a price of Rs 116.75 per unit to SIPL for consideration other than cash, subject to the approval of unit holders of IndInfravit Trust.

IndInfravit Trust is an Infrastructure Investment Trust or InvIT sponsored by L&T Infrastructure Development Projects Ltd.

The allotment follows an agreement signed between IndInfravit and SIPL last July to sell the latter's entire equity shareholding in nine operational road projects to the InvIT for an enterprise value of about Rs 6,610 crore.

As part of the transaction, SIPL will receive an equity value of about Rs 2,550 crore, and about Rs 1,900 crore in cash, the company had announced.

SIPL's road portfolio comprises seven toll roads and two annuity projects with a total of 2,619 lane kilometre spanning Gujarat, Karnataka, Maharashtra, Rajasthan, and Telangana. These projects have been operational for about six years.

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