GMR divests major stake in TN highway project to IDFC infra fund

GMR Highways, part of the diversified GMR Group, has signed an  agreement with India Infrastructure Fund (IIF) to divest 74 per cent stake in GMR Ulundurpet Expressways (GUEL). The transaction is subject to conditions customary to such transactions.

The GUEL stake sale attracted interest from major investors in the country and abroad. This is the second major divestment in GMR’s roads portfolio in about six months. In February, it had sold another highway project, in Andhra Pradesh, for Rs 206 crore to SBI Infrastructure Investments.

GUEL operates the highway stretch of 73 km, from Tindivanam to Ulundurpet on National Highway-45 in Tamil Nadu. The project began commercial operations in July 2009. GMR Group will receive Rs 222 crore for the stake sale.  IIF, run by IDFC Project Equity, is one of the largest infrastructure-focused funds. It has investments in roads, ports, conventional and cleantech energy assets. The several infrastructure entities it has invested in operate 1,878 lane-km of roads in India.