Infrastructure firm GVK Power and Infrastructure is looking to sell part of its infrastructure business in India.
The company is trying to sell its stake in the Jaipur-Kishangarh and the Bagodara- Vasad road projects and a stake in its airports business.
GKV is hoping to raise as much as Rs 1,200 crore (US$190 million) from the two road projects. Private equity firms such as SBI-Macquarie have shown interest in the projects.
Jaipur-Kishangarh Expressway is a 90 km long access controlled toll expressway connecting Jaipur, the capital of the Indian state of Rajasthan, to Kishangarh, the marble capital of the state. The expressway forms a segment of the NH-8 which is a part of theGolden Quadrilateral project, which itself is a part of the National Highway Development Project (NHDP). The expressway is six-lane and was inaugurated in April 2005.
Bagodara- Vasad project involves six-laning of 611.4 km in the State of Gujarat (India) on BOT basis. The project highway is a part of SH-8, which provides key connectivity to two national highways, NH-8A (Ahmedabad-Rajkot-Probandar), and NH-8 (Mumbai-Delhi). The project has a concession period of 27 years including construction period of 30 months.
Regarding the stake in the airports unit, a group of investors led by IDFC Private Equity is in initial talks with the company to buy a significant minority stake in its airports business for Rs 2,500 crore (US$400 million).
Sanjay Reddy, GKV's Vice-Chairman, stated:
The stake sale is being discussed at the holding company level for the airports business, IDFC can bring up to $150 million in the deal, while the rest will come from other investors.
The firm looks to reduce its Rs 18,000 plus (US$2.85 billion) of debt on books. Both deals would help to achieve this objective debt. In the case of the airport business unit, the company is also looking at expanding its capacity.