IVRCL, engaged in infrastructure business, has entered into a binding agreement with Dubai based Utico FZC to sell its equity stake in Chennai Water Desalination (CWDL) which is a subsidiary of IVRCL. The transaction is expected to complete in 3 months subject to the approvals of Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB), lenders and other applicable authorities and satisfaction of certain agreement related conditions. The 100% equity valuation of CWDL arrived for this transaction is around Rs 1.5 billion.

CWDL is a 100 million litres per day (MLD) seawater desalination project is operational since July 2010, with 25 years concession period under a bulk water purchase agreement (BWPA) signed with CMWSSB.

Shares of the company gained Rs 1.95, or 14.34%, to trade at Rs 15.55. The total volume of shares traded was 533,818 at the BSE (3.27 p.m., Thursday).