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Three Pvt Equity Players Weigh GMR Road Assets

  • GMR is expected to sell stake in some of its road assets to raise around Rs1,000 crore.The infrastructure company currently has six build, own and transfer (BOT) road projects —- Tambaram-Tindivanam (93 km), Tuni-Anakapalli (60 km), Ambala-Chandigarh (35 km), Adloor-Gundla Pochampalli (107 km), Tindivanam-Ulunderpet (71 km) and Farukhnagar-Jadcharla (58 km) —- earning toll revenues.Three more BOT projects —- Hyderabad-Vijayawada (181 km), Chennai Outer Ring Road (29.65 km) and Hungund-Hospet (99 km) —- are under construction.

  • All these projects are being developed through special purpose vehicles floated specifically for executing and operating the asset.Details of the projects being put on the block were not available.Sources, however, said there is investor interest in most of the projects owing to the revenue they are generating.Indeed, at least three private equity firms are said to be in advanced stages of discussion with GMR on buying stake in the road projects.

  • The UK-based 3i Group, which has already made significant investments in another infrastructure major, GVK, is said to be among the PE firms that are in talks with GMR.Two Indian firms are also in the race to acquire stake in the road SPVs, said sources.A source said the investor interest was understandable considering some of these projects are doing very well at a time when toll collections in most road projects across the country are running short of expectations.GMR officials refused to confirm any such talks. “We do not comment on speculative transactions, until they reach a definitive stage,” said a company spokesman.

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