Gammon obtains underwriting for financial closure of 5 road projects

NEW DELHI: Gammon Infrastructure has secured underwriting of the financial closure for five highways projects in Bihar, Andhra Pradesh, Madhya Pradesh, Orissa and Haryana, which is likely to help the developer tie up funds easily and enable faster pace of progress.

" Gammon Infrastructure Projects Ltd has obtained underwriting of the financial closure for Patna Buxar Road Project involving four laning of the Patna - Buxar stretch of NH-30," the company today said in a filing to the Bombay Stock Exchange.

The project involves widening of 124.85 km stretch of highways.

The other project for which the infrastructure major obtained underwriting is "Vijayawada Gundugolanu Road Project involving six laning of the Vijayawada - Gundugolanu section of NH-5 (104 Km) in Andhra Pradesh."

The company said it has also taken financial assurance for a 103 km road project in Madhya Pradesh besides "upgradation of Birmitrapur to Barkote section of NH -23 (126 km) in Orissa."

The fifth project pertained to four laning of Yamunanagar Panchkula section of NH -73 (106 km) in Haryana.

In the underwriting process, a bank underwrites the entire debt for a certain project, for a certain fee. This helps in seeking funds from other banks for the debt.

The company said it has also achieved commercial operations date (COD) for design, construction, finance and maintenance of 32.27 km long four-lane bypass to Gorakhpur town on NH- 28 in Uttar Pradesh and 1.8 km four-lane bridge across river Kosi in Bihar.

The shares of the company closed at Rs 9.93 a scrip, down 1.88 per cent from the previous close on the BSE.