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Diversified group GMR today said it has decided to sell 74% share in GMR Ulundurpet Expressways Private Limited to India Infrastructure Fund of IDFC for Rs 222 crore.
"GMR Group's Asset Right and Asset Light Strategy, GMR Highways Ltd has signed a definitive agreement with India Infrastructure Fund (IIF) to divest 74% stake in GMR Ulundurpet Expressways Private Limited (GUEL)," the company said in a statement.
The transaction is subject to closing conditions customary to such transactions. India Infrastructure Fund of IDFC emerged as successful bidder in buying majority stake in GUEL, the statement said.
GUEL operates the highway stretch of about 73 km, from Tindivanam to Ulundurpet on National Highway 45 in 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, it added.
"We at GMR Group, continue to focus on creating liquidity and reducing our leveraged position, as part of the strategy of churning of assets....," Group CFO of GMR Madhu Terdal said in a statement.
She said divestment of this asset will infuse equity funds of Rs 222 crore.
"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. We look forward to continue working with GMR in building and operating quality infrastructure assets in India," M K Sinha, Managing Partner and CEO of IDFC Alternatives said.
IIF is one of the largest infrastructure focused funds and has a well-diversified portfolio with existing investments in roads, ports, conventional and cleantech energy assets.
