Gayatri Projects gains on executing share purchase agreement to sell its stake in WUPTL

Gayatri Projects is currently trading at Rs. 572.00, up by 5.50 points or 0.97% from its previous closing of Rs. 566.50 on the BSE.

The scrip opened at Rs. 600.00 and has touched a high and low of Rs. 601.10 and Rs. 571.50 respectively. So far 1835 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 769.20 on 24-Dec-2015 and a 52 week low of Rs. 136.20 on 26-Mar-2015.

Last one week high and low of the scrip stood at Rs. 705.00 and Rs. 523.75 respectively. The current market cap of the company is Rs. 2057.19 crore.

The promoters holding in the company stood at 47.48% while Institutions and Non-Institutions held 40.06% and 12.47% respectively.

Gayatri Projects (GPL) and its subsidiary Gayatri Infra Ventures (GIVL) along with NCC have executed a share purchase agreement with Cube Highways and Infrastructure to sell their entire 100% shareholding in Western UP Tollway (WUPTL). The transaction is expected to complete within 1-2 months, after which Cube Highways and Infrastructure, a unit of global infrastructure investment manager, I Squared Capital, will emerge the sole owner of WUPTL.

WUPTL is a four lane highway project connecting the Meerut - Muzaffarnagar section (from km 52.25 to km 131) of NH 58 in the state of Uttar Pradesh (UP) under the National Highway Development Project (NHDP). The project has been fully operational since October 2011 with 20 years tolling period based on a concession agreement executed with National Highway Authority of India (NHAI).

This divestment move is in line with GPL’s management efforts to monetize its road investments, which enables the company to reduce its debt burden and to go forward with a more asset-light approach.