Gayatri Projects Limited plans to monetise more completed road assets in its efforts to reduce the company debt and then retrain its focus on EPC business.

The company has informed that most of the proceeds of the divestment of Western UP Tollways Limited will be used to reduce high-cost debt of the company and its subsidiary Gayatri Infrastructure Ventures Limited.

This will allow the company to go forward with more asset light approach and to refocus efforts on EPC execution.

The diversified Hyderabad-based infrastructure company owns eight Built, Operate and Transfer (BOT) mode road assets, directly or through its subsidiary Gayatri Infra Ventures Limited. Of which seven are operational and the eighth one is on target to become operational during the current calendar year.

Over the last three months, the company has made several announcements regarding on-going efforts to monetise or restructure this portfolio of mature assets.

Monetisation of this portfolio is likely to significantly reduce debt load and interest burden on the holding company Gayatri Projects Limited accounts. This will also allow the returns from new EPC contracts to translate into higher profits for the company.

Earlier this month, the company had announced the strategic divestment of Western UP Tollways Limited, a project which has been operational since 2011. NCC Limited and Gayatri Projects Limited along with its subsidiary Gayatri Infra Ventures Limited executed a share purchase agreement on January 19 with Cube Highways and Infrastructure PTE Limited to sell its entire shareholding in Western UP Tollway Limited (WUPTL).

The company further informed that it has received a robust inflow of EPC orders of over Rs 4000 crore during the current year, more than doubling its effective order book.

Gayatri Projects expressed that it was confident of executing and completing these projects in a timely manner, while continuing to bid for more projects.

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