The GMR Group has completed the divestment of its majority stake (74 per cent) in GMR Ulundurpet Expressways Pvt Ltd (GUEPL) to India Infrastructure Fund (IIF).
IIF has earlier emerged as the successful bidder, in buying majority stake in GUEPL, which attracted strong interest from several major investors in India and abroad.
GMR and IIF had signed a definitive agreement on September 17, 2013 and the transaction was concluded on February 17, 2014 upon receipt of all necessary approvals, and realisation of sales proceeds amounting to Rs 220 crore.
The divestment of this stake releases capital worth Rs 198.75 crore and reduces the debt to the extent of Rs 450.67 crore from the consolidated balance sheet of GMR Group. This is the second major divestment in GMR’s highways portfolio during this year.
GUEPL operated the highway stretch of about 73 km from Tindivanam to Ulundurpet on National Highway No 45, which is to the south of Chennai in Tamil Nadu, from July 2009.
Madhu Terdal, Group CFO of GMR Group, said: “The completion of this transaction demonstrates the ability of the GMR Group to successfully implement its 'Asset-Light-Asset-Right' strategy to optimise the value realisation from mature infra assets. The focus of the group continues to be creating liquidity and reducing our leveraged position, for the benefit of all stakeholders.”