Gammon to buy Sadbhav's stake in Mumbai-Nasik Expressway for Rs 72 crore

NEW DELHI: Gammon Infrastructure Projects Ltd (GIPL) today said it will buy out Sadbhav Engineering's 20 per cent stake in Mumbai Nasik Expressway for Rs 72 crore.

"An authorised committee of the Board of Directors of the Company has approved the buy-out of 20 per cent equity stake (1,03,99,500 equity shares of Rs 10 each) held by Sadbhav Engineering Ltd from Mumbai Nasik Expressway Ltd at a cumulative price of Rs 72 crores," GIPL said in a filing to the BSE.

However, the deal will be subject to "requisite approvals", GIPL, which is an infrastructure project development company promoted by Gammon India Limited, to participate in the development of infrastructure projects on a public private partnership basis, said.

Mumbai Nasik Expressway (MNEL) is the special purpose vehicle promoted by the company to develop, operate and manage Vadape to Gonde section of the National Highway No 3 in Maharashtra.

MNEL connects one of the most important gateways - Mumbai to Northern, Central and Eastern part of India.

At the time when the (build, operate and transfer) BOT project was awarded to the company by the National Highways Authority of India (NHAI)- it was the largest BOT road project in India.

The project involves four-laning of the 99.5 km Vadape-Gonde (Mumbai-Nasik) section of the National Highway-3.

The project is in the construction phase, the company said adding that it can start collecting toll during the construction period on completion of at least 50 km of a continuous stretch.

The concession/ licence period for this project is 20 years that runs until October 2025.

The shares of GIPL closed at Rs 15.20 apiece on the BSE, down 0.33 per cent from the previous close.