Ramky Infrastructure has divested part of its stake in a special purpose vehicle created to execute a road project in Madhya Pradesh to Era Infra.
The Hyderabad-based infrastructure company brought down to 26 per cent its 51 per cent stake in the Gwalior Bypass Road Project, offering the remaining stake to Era Infra Engineering Limited, its project partner.
Permissible limit
The 42-km stretch entails four-laning of a bypass road in Madhya Pradesh. Located in the North-South corridor of the National Highways Development Programme, the project is being executed under the Build, Operate and Transfer mode.
The SPV, Gwalior Bypass Road Project Pvt Limited, had Era Infra Engineering Limited as consortium lead and included Ramky Infrastructure and Shriram Chits.
“The project is under execution and is likely to be completed in about four months. As per NHAI norms, the developer cannot bring down the holding to below 26 per cent within the execution phase. We are within the permissible norms,” M. Gautham Reddy, Executive Director, Ramky Infra, told Business Line .
The Board of Directors of the Company, at its meeting on Tuesday, approved the execution of the shareholders’ agreement with Era Infrastructure (India) Ltd for dilution of equity in Gwalior Bypass Projects Ltd.
It also approved a share purchase agreement for sale of preference shares held in Gwalior Bypass Projects Limited.