Gammon India gains on buzz of plans to sell Gammon Infra Projects

Gammon India rose 1.16% to Rs 34.85 at 13:24 IST on BSE after reports the company has initiated talks to sell its listed arm Gammon Infrastructure Projects.

Gammon Infrastructure Projects rose 1.17% to Rs 19.08.

Meanwhile, the S&P BSE Sensex was up 177.96 points or 0.61% at 28,239.30.

On BSE, so far 2.39 lakh shares were traded in the counter as against average daily volume of 2.63 lakh shares in the past one quarter.

The stock hit a high of Rs 35.95 and a low of Rs 34.80 so far during the day. The stock had hit a 52-week high of Rs 44.70 on 19 September 2014. The stock had hit a 52-week low of Rs 11.70 on 4 February 2014.

The stock had outperformed the market over the past one month till 20 November 2014, rising 8.85% compared with the Sensex's 6.2% rise. The scrip had also outperformed the market in past one quarter, gaining 6.82% as against Sensex's 6.66% rise.

The small-cap firm has an equity capital of Rs 27.30 crore. Face value per share is Rs 2.

Gammon has already met 3-5 potential buyers, which includes strategic and financial investors, for selling the 58.6% held by the promoter group in Gammon Infrastructure Projects (GIPL), report said. The transaction could fetch Gammon anything between Rs 1000 crore and Rs 1,200 crore which it plans to use to trim debt.

Gammon was among the worst hit among infrastructure companies due to the economic slowdown as delays in ongoing projects and lack of new orders resulted in mounting debt and losses. In July last year, its lenders approved a Rs 13500 crore corporate debt restructuring (CDR) package for Gammon India.

Gammon Power holds 56.28% in Gammon Infra as at 30 September 2014.

Gammon India is a physical infrastructure construction company.

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