GMR Infrastructure Ltd has divested 74 per cent stake in GMR Ulundurpet Expressways Ltd to India Infrastructure Fund (IIF) for Rs 222 crore.
Managed by IDFC Alternatives, IIF has investments in several infrastructure entities that operate over 1,878 lane km of roads in India, and the latest investment is expected to further expand its roads portfolio.
IIF emerged successful bidder in buying majority stake in the GMR arm, which attracted interest from investors both in India and abroad, a company release said.
Commenting on the divestment, Madhu Terdal, Group CFO of GMR Group, said: “This transaction signifies the group’s ability to successfully implement its ‘Asset-Light-Asset-Right’ strategy under challenging market conditions. By this divestment, we will reduce the debt as on August 31, 2013 by about Rs 459 crore on a fully consolidated basis, in addition to infusing equity funds of Rs 222 crore.”
M. K. Sinha, Managing Partner and CEO of IDFC Alternatives, said: “This investment is our first major acquisition and a step in the direction of implementing our road sector strategy of acquiring control of operational projects with proven traffic history. Given the uncertainty and delays in implementing under-construction projects, we will continue our focus on acquisition of operating road assets.”