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Gammon seeks to offload projects

Gammon seeks to offload projects
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Gammon Infrastructure is planning to sell stake in two infrastructure projects to raise equity funding to meet expansion plans. The company hopes to raise around Rs 300 crore through this route, in addition to Rs 200 crore it plans to raise through a rights issue.

The company may either divest a part of their SPVs or look at securitising receivables from existing projects. The co­mpany's first choice is via divestment, for which it has already received interested parties for a berth at Visakhapatnam port and a road project in the Mumbai-Nashik sector.

Gammon Infra is currently developing five road projects, two port projects and five power projects. This is in addition to four projects already operational. It has tied-up Rs 6,000 crore in debt for these projects.

The funds to be raised this year would provide for equity for some of the ongoing projects, as well as new projects it might bid and win this year.

The company lost 3.4 per cent on the sotck market.

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