Gammon India surges on transfer of civil EPC business to GRIL

The board has approved transfer of civil EPC biz to Gammon Retail Infrastructure Pvt Ltd.

Shares of Gammon India were up nearly 9% at Rs 13.15 on the Bombay Stock Exchange after the company's board at its meeting held today approved the transfer of Civil Engineering ,Procurement and Construction (EPC) business to Gammon Retail Infrastructure Pvt Ltd.

The tranfer of civil EPC business comprises of roads, hydro-power, nuclear power, tunnels, bridges, buildings, cooling towers, chimneys and other sectors as a going concern, which shall include all the properties, rights and powers and all debts, liabilities, duties and obligations comprised in/and pertaining to the Civil EPC business ("Civil EPC Business"), the company said in a release.

The transfer as approved on 14th August, 2015 will now be carried out through a combination of "Scheme of Arrangement" and "slump sale" subject to lenders and shareholders approval, the release added.

The release also said that the board is also evaluating proposals from potential investors for its Civil EPC Business.

The stock opened at Rs 12.50 and touched a high of Rs 13.23. At 12:20pm, over 470,000 shares were traded on both the stock exchanges.