After selling 33 per cent stake in Bangalore International Airport to Fairfax, GVK Power and Infrastructure is now in the advanced stage of discussions with a buyer to sell one of its road projects, a senior official said.
However, he did not disclose that which project, of the company’s three operating road projects, has been up for sale.
Meanwhile, sources close to the development said GVK was likely to sell its stake in GVK Deoli-Kota Expressway Pvt Ltd which has developed the 332.16 km Deoli-Kota Expressway project in Rajasthan.
“We are working out some strategies to reduce debt. It’s in process of getting implemented. The idea is to reduce the debt. There is one road project (in Rajasthan) that we are selling. The discussions are in the last stage,” the official said on the sidelines of company’s AGM.
He said due diligence for the project has also been completed and the buyer is yet to decide time to close the transaction.
As per the latest annual report of the company, Deoli-Kota Expressway commenced partial commercial operations in August last year and completed commercial operations from March 7, 2016.
It recorded revenues of Rs 28.32 crore for year ended March 31, 2016. Net loss for the year ended March 31, 2016 is Rs 60.25 crore.
When contacted, Issac George, CFO of GVK, said the consolidated debt of the company would be about Rs 22,500 crore as on date.
Recently, GVK announced its plans to sell a 33 per cent stake in BIAL to Fairfax India Holdings Corp and Fairfax Financial Holdings Ltd to raise money to repay debt.
The move would leave GVK’s stake in the airport company at 10 per cent.