GMR Infra gains nearly 5% in two days

GMR Infrastructure rose 2.90% to Rs 19.86 at 13:03 IST on BSE, extending Tuesday's 1.90% rise triggered by the company divesting majority stake in GMR Ulundurpet Expressways to India Infrastructure Fund of IDFC.

The company made the announcement during trading hours on Tuesday, 17 September 2013. The stock rose 1.90% at Rs 19.30 on that day. The stock has risen 4.86% in two trading sessions from Rs 18.94 on Monday, 16 September 2013.

Meanwhile, the BSE Sensex was up 21.65 points, or 0.11%, to 19,825.68.

On BSE, 11.38 lakh shares were traded in the counter compared with average volume of 11.57 lakh shares in the past one quarter.

The stock hit a high of Rs 19.96 and a low of Rs 19.31 so far during the day. The stock hit a record low of Rs 10.65 on 6 August 2013. The stock hit a 52-week high of Rs 27 on 4 October 2012.

The stock had outperformed the market over the past one month till 17 September 2013, rising 53.30% compared with the Sensex's 6.48% rise. The scrip had, however, underperformed the market in past one quarter, sliding 4.69% as against Sensex's 2.47% rise.

The mid-cap company has an equity capital of Rs 389.24 crore. Face value per share is Re 1.

GMR Infrastructure announced that GMR Highways has signed a definitive agreement with India Infrastructure Fund (IIF) to divest 74% stake in GMR Ulundurpet Expressways (GUEL). GMR Group will receive a consideration of about Rs 222 crore for the sale of 74% equity stake.

The transaction is subject to closing conditions customary to such transactions. IIF emerged as successful bidder in buying majority stake in GUEL, which attracted strong interest from several major investors from India and abroad. This is a second major divestment in GMR's roads portfolio in less than 6 months, the company said.

GUEL operates the highway stretch of about 73 kilometre (km), from Tindivanam to Ulundurpet on National Highway 45 in the state of Tamil Nadu. The project commenced commercial operations in July 2009.

IIF, which is one of the largest infrastructure focused funds, has a well-diversified portfolio with existing investments in roads, ports, conventional and cleantech energy assets. IIF has investments in several infrastructure entities that operate in the aggregate, over 1,878 lane km of roads in India and this investment will further expand its existing roads portfolio.

On a consolidated basis, GMR Infrastructure reported a net loss of Rs 326.03 crore in Q1 June 2013, higher than the net loss of Rs 94.30 crore in Q1 June 2012. Net sales rose 1.6% to Rs 2614.72 crore in Q1 June 2013 over Q1 June 2012.

GMR Infrastructure is a Bangalore-headquartered global infrastructure major with interests in Airports, Energy, Highways and Urban Infrastructure sectors. It has successfully employed the public-private partnership model to build a portfolio of high quality assets.

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