Gammon Infra gains as board approves divestment of entire stake in nine project companies

Gammon Infrastructure Projects rose 2.63% at Rs 11.72 at 14:21 IST on BSE after the announced that it will receive a cash flow of about Rs 563 crore from disinvestment of the company's entire shareholding in nine project companies to BIF Holdings Pte

The announcement was made before market hours today, 28 August 2015.

Meanwhile, the S&P BSE Sensex was up 164.61 points or 0.63% at 26,395.80

On BSE, so far 12.80 lakh shares were traded in the counter as against average daily volume of 1.72 lakh shares in the past one quarter.

The stock hit a high of Rs 13 and a low of Rs 11.67 so far during the day. The stock had hit a 52-week high of Rs 20.85 on 20 November 2014. The stock had hit a 52-week low of Rs 9.05 on 12 June 2015.

The small-cap company has equity capital of Rs 188.33 crore. Face value per share is Rs 2.

Gammon Infrastructure Projects (GIPL) will get additional cash flow of up to Rs 100 crore on crystallization of certain milestones in future. The nine project companies are Aparna Infraenergy India, Sikkim Hydro Power Ventures, Pravara Renewable Energy, Andhra Expressway, Rajahmundry Expressway, Kosi Bridge Infrastructure Company, Gorakhpur Infrastructure Company, Mumbai Nasik Expressway and Vijayawada Gundugolanu Road Project. GIPL holds about 80% stake in Mumbai Nasik Expressway. All the other project companies are 100% subsidiaries of GIPL.

GIPL's board has also recommended divestment of GIPL's 50% shareholding in Vizag Seaport for a consideration of Rs 62.50 crore in favour of Lastin Infrastructure Projects, an affiliate of an existing shareholder viz. the Lastin Group. After the divestment, GIPL will hold 23.76% stake in Vizag Seaport.

Based on consolidated financials, GIPL reported net profit of Rs 3.80 crore in the quarter ended 30 June 2015 as compared to net loss of Rs 20.60 crore in the quarter ended 30 June 2014. Net sales rose 41.2% to Rs 204.89 crore in the quarter ended 30 June 2015 over the quarter ended 30 June 2014.

GIPL undertakes development of infrastructure projects on public private partnership (PPP) basis.

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