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GMR Infra soars as its group company inks definitive pact to divest 74% stake in GUEL

17 Sep 2013 Evaluate

GMR Infrastructure is currently trading at Rs. 19.28, up by 0.34 points or 1.80% from its previous closing of Rs. 18.94 on the BSE.

The scrip opened at Rs. 18.95 and has touched a high and low of Rs. 19.61 and Rs. 18.50 respectively. So far 786089 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 27.00 on 04-Oct-2012 and a 52 week low of Rs. 10.65 on 06-Aug-2013.

Last one week high and low of the scrip stood at Rs. 19.70 and Rs. 15.38 respectively. The current market cap of the company is Rs. 7524.08 crore.

The promoters holding in the company stood at 71.64% while Institutions and Non-Institutions held 19.30% and 9.05% respectively.

GMR Infrastructure’s group company GMR Highways has signed a definitive agreement with India Infrastructure Fund (IIF) to divest 74% stake in GMR Ulundurpet Expressways (GUEL). This step is in line with GMR Group’s Asset Right and Asset Light Strategy and the transaction is subject to closing conditions customary to such transactions. This is a second major divestment in GMR’s roads portfolio in less than 6 months. IIF emerged as successful bidder in buying majority stake in GUEL, which attracted strong interest from several major investors from India and abroad.

GUEL operates the highway stretch of about 73 km, from Tindivanam to Ulundurpet on National Highway 45 in the state of Tamil Nadu. The project commenced commercial operations in July 2009. GMR Group will receive a consideration of about Rs 222 crore for the sale of 74% equity stake. Link Legal India Law Services acted as a Transaction Legal Advisors for GMR Group while Udwadia Udeshi & Argus Partners acted as Advisors for IIF.

GMR Infrastructure is a Bangalore headquartered global infrastructure major with interests in Airports, Energy, Highways and Urban Infrastructure sectors. The company has 14 power generation assets of which 8 are operational and 6 are under various stages of development and 8 Road assets, of which 7 are operational and one is under construction.

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