GMR Group divests 51% stake in Karnataka road project for Rs 85 crore

GMR Group firms have entered into an agreement with its partners to divest 51% stake in its joint venture running a road project in Karnataka.

The deal will help GMR Group pare debt by Rs 1,077.97 crore and enhance liquidity by Rs 85 crore.

"GMR Highways and GMR Infrastructure have signed a share purchase agreement with its joint venture partners to divest 51% stake in GMR OSE Hungund Hospet Highways Pvt Ltd (GOHHHPL)," GMR Infrastructure said in a BSE filing.

"The overall sale consideration is about Rs 85 crore. The sale consideration is about 1.1 times book value investment. This is the third major divestment in GMR Group's road portfolio," it added.

GOHHHPL operates National Highway Number 13, which is a 99 kms project in Karnataka. The project was bagged by GMR OSE consortium in 2010 on design, build, finance, operate and transfer basis.