Gammon Infrastructure Projects rallies 10% on sale reports

NEW DELHI: Gammon Infrastructure Projects Ltd rallied as much as 9.99 per cent in trade on Friday, after reports suggested that Gammon India has initiated talks to sell its listed arm Gammon Infrastructure Projects, in what could be the first instance of an infrastructure major divesting its project development business.

At 09:40 a.m.; Gammon Infrastructure Projects was trading 6.5 per cent higher at Rs 20.05. It hit a low of Rs 19.55 and a high of Rs 20.74 on BSE in trade today.

Gammon India was trading 3.6 per cent higher at Rs 35.70. It hit a low of Rs 35.30 and a high of Rs 35.95 in trade today.

Gammon has already met 3-5 potential buyers, which includes strategic and financial investors, for selling the 58.6% held by the promoter group in Gammon Infrastructure Projects (GIPL), two sources close to the deal told ET.

The transaction could fetch Gammon anything between Rs 1,000 crore and Rs 1,200 crore which it plans to use to trim debt, said the ET report.