GMR Infrastructure said on Wednesday it had sold 74% stake in its highway construction unit to India Infrastructure Fund. The sale was valued INR222 million. GMR said that the sale of Ulundurpet Expressways would help the company reduced its debt and create liquidity.
Ulundurpet Expressways had been operating a 73-km stretch on National Highway 45 in India. This linked Tindivanam to Ulundurpet in Tamil Nadu.
India Infrastructure Fund (IIF) is a domestic venture capital fund that is focused on infrastructure projects. IIF had made investments in several infrastructure entities and is sponsored by IDFC Limited.
Madhu Terdal, group CFO at GMR Group said in a statement, "We at GMR continue to focus on creating liquidity and reducing our leveraged position as part of the strategy of churning of assets. The divestment of the current asset will also reduce the debt as on August 31 by about INR459 million on a fully consolidated basis, in addition to infusing equity funds of INR222 million."
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