Gayatri Projects up 5% as subsidiary to sell stake in Sembcorp Energy

Gayatri Projects hit a multi-year low level of Rs 56.90 on November 25, 2019 after continued fall in share prices following invocation of pledged shares by lenders

Shares of Gayatri Projects hit 5 per cent upper circuit at Rs 73.40 on the BSE on Thursday, after its subsidiary Gayatri Energy Ventures Pte Ltd (GEVPL) signed an agreement to sell the remaining 5.96 per cent stake in Sembcorp Energy India Limited (SEIL) to Sembcorp Utilities for Rs 406 crore.

According to Gayatri Projects' filing to exchanges, GEVPL will be entitled for future earn-outs "based on achievement of certain milestones by SEIL". READ THE FILING HERE

"The proceeds of the stake sale will be utilised for reduction of the debt, general corporate purposes and working capital,"