GMR Infra completes stake sale in Ulundurpet highway project

GMR Infrastructure, the Bangalore-based infrastructure major with interests in Airports, Energy, Highways and Urban Infrastructure sectors, today announced the completion of the divestment of a majority 74% in GMR Ulundurpet Expressways Private Limited (GUEPL) to India Infrastructure Fund (IIF) for Rs 220 crore.

The divestment of this stake releases capital amounting to Rs 198.75 crore and reduces the debt to the extent of Rs 450.67 crore from the consolidated balance sheet of GMR Group. The group’s consolidated debt is estimated over Rs 40,000 crore.

This is the second major divestment in GMR’s Highways portfolio during this year. GUEPL has been operating the highway stretch of about 73 km, from Tindivanam to Ulundurpet on National Highway No 45 from July 2009.

IIF had earlier emerged as the successful bidder, in buying majority stake in GUEPL, which attracted strong interest from several major investors in India and abroad. GMR and IIF had signed a definitive agreement on September 17, 2013 and the transaction was concluded on February 17, 2014, upon receipt of all necessary approvals, and realisation of sale proceeds.

The company’s stock closed at Rs 19.50 per share, flat from the previous close on the Bombay Stock Exchange.