Home » Macquarie SBI buys 74% stake in GMR road project in AP

Macquarie SBI buys 74% stake in GMR road project in AP

Macquarie SBI buys 74% stake in GMR road project in AP
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To sell 74 per cent stake in GMR Jadcherla Expressways, GMR Highways has signed an agreement with Macquarie SBI Infrastructure Investments Pte and SBI Macquarie Infrastructure Trust. This GMR Group operates the GJEL Farukhnagar-Jadcherla highway in Andhra Pradesh, under a concession agreement signed with NHAI.

The project commenced commercial operations in February 2009. The GMR Group will receive Rs 195 crore immediately and about Rs 11 crore later.

This works out to Rs 206 crore for the sale of 74 per cent stake. The original invested capital for the corresponding stake was about Rs 146 crore. Macquarie SBI, which is one of the largest India-focused infrastructure funds, has expanded its roads portfolio with this investment, and has a well-diversified portfolio with assets in the telecom towers, airports, power, roads and renewable energy sectors.

Globally, large infrastructure groups follow the strategy of churning the mature infra assets to optimise the value realisation process and to meet their growth capital requirements, said Subba Rao Amarthaluru, CFO of GMR Group.

He added that monetisation of assets by picking the right partners to divest is completely in sync with the company’s strategy. This reinforces the GMR GroupÂ’s asset light and asset right philosophy. The GMR Group will continue to focus in adopting this approach in other businesses as well, he said. GMR Group operates the GJEL Farukhnagar-Jadcherla highway in Andhra Pradesh, under a concession agreement signed with the NHAI.

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