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Gayatri Projects Ltd is in parleys with private equity (PE) players to raise funds for two of its verticals — power and roads — and is expecting to close the deals during the quarter to part-fund its expansion plans.
The Vice-President (Finance), Gayatri Projects, Mr K.G. Naidu, said: “This is to infuse funds for our long- term business growth. The market conditions have been relatively volatile in the past few weeks. However, we expect to close deals for both these divisions, now on expansion drive.”
Mr Naidu told Business Line Gayatri Infra Ventures Ltd that handles road projects is executing seven projects at a total outlay of Rs 5,200 crore — four annuity and three tollways. "Each project has a partner which includes IDFC, NCC, IL&FS and DLF. AMP Capital had earlier invested in the venture. We are looking at additional fund infusion in this arm.”
“Likewise, we are finalising a deal in the power division, which is currently executing projects with a total installed capacity of 5,540 MW, all thermal power stations. Two of these projects have strategic partner promoters-which includes Sembcorp, a Singapore Government-promoted company and NCC Ltd. Another project is currently being implemented through Gayatri Energy Ventures,” he said.
Referring to the current business scenario, Mr Naidu said: “Infrastructure companies are faced with delays in clearances and increasing fund costs. This is something which is cyclical and impacts all sector players. Last fiscal, we closed with revenues of Rs 1,450 crore and expect a growth of over 20-30 per cent per annum conservatively.”
“We now have an order book of Rs 7,500 crore, which is good enough for the next 30 months,” he said.
Financial closure
Two projects being executed in partnership with Sembcorp and NCC have closed funding. Work on the first one has commenced with the equipment from Dong Fang Electric arriving at the site. “We are in advanced stage of negotiations for closing the finances for phase one of 1,260 MW Jinbhuvish power project in Maharashtra,” he said.
“We expect to achieve financial closure for Rs 2,200 crore first phase of 600 MW by December. This will be taken up with a debt equity ratio of 70:30,” he said.
Gayatri Projects shares closed the day up 1.4 per cent at Rs 209.90.
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