Gammon Infra denied market talk of stake sale in Mumbai-Nasik road project

Gammon Infrastructure Projects denied market speculation about stake sale in a project that made its shares soar on the bourses on Wednesday.

"We have no plans to sell stake in our Mumbai-Nasik highway project. These are baseless market speculation," Gammon Infra's Managing Director K.K. Mohanty told ET.

Shares of Gammon Infrastructure Projects soared 6% on Wednesday to end at Rs 15.21 on the Bombay Stock Exchange driven by buzz that the company plans to sell stake in its Mumbai-Nasik highway project, where it holds 80%. BSE's 30-share benchmark index Sensex ended up 0.5% at 17,707.

According to the market speculations, Sadbhav Engineering, which holds 20% in the road project is in talks with Gammon Infrastructure to increase its stake in the special purpose vehicle that houses the project.

"We are not even talking to Sadbhav for a potential stake sale," Mohanty said.

Sadbhav Engineering closed at Rs 143 a share, up around 2% from the previous close.

Gammon Infrastructure, the infrastructure development arm of Mumbai-headquartered Gammon India, is currently has 14 projects in its portfolio.