GMR Infrastructure sells stake in transmission projects

GMR Infrastructure has declared stake sale in transmission projects to Adani Transmission (ATL). The company’s subsidiary, GMR Energy (GEL) has agreed to transfer the interest in its transmission projects – Maru Transmission Services (MTSL) and Aravali Transmission Services (ATSL) to ATL. Now, 74 per cent stake in MTSL and 49 per cent stake in ATSL will be transferred to ATL with an option to acquire the balance stakes in both the projects.

The equity consideration credited for the transaction involving both the projects is Rs 100 crore. The total value realisable for GEL could be Rs 220 crore considering this equity consideration. Out of the total amount up to Rs 120 crore will go towards regulatory proceeds of various appeals of the assets before the APTEL.

After the transaction, GMR Group’s consolidated debt would be reduced. The total debt in the projects stand at Rs 324 crore as on FY16.

The share price of GMR Infrastructure has increased by 3.14 per cent on bourses in early trades; and is trading at Rs 13.37 on an intraday basis.

GMR Infrastructure is engaged in generation of power; mining and exploration activities; development of highways; infrastructure development; construction business and operation of airports & special economic zones. The company operates through segments including Airports, Power, Roads, EPC and others.