Singapore’s GIC acquires 6.2% stake in Gayatri Projects for $25m

Photo: Bloomberg

The Government of Singapore Investment Corp (GIC) has acquired a 6.2 per cent stake in Hyderabad-based Gayatri Projects for $25.5 million by way of a stock market block deal.

GIC bought 1.1 crore shares of the infrastructure company at Rs 150 each aggregating to Rs 165 crore ($25.5 million).

Founded in 1989, Gayatri Projects Ltd is engaged in the construction of highways, industries and irrigation canals. The firm is engaged in the construction of concrete, masonry and  earthen dams, national highways, bridges, canals, aqueducts, airports and ports.

Gayatri Projects operates as a subsidiary of Gayatri Group.The company recorded a revenue of Rs 2,115.35 crore in FY17, up 16.7 per cent from last year’s Rs 1,812.53 crore. Revenue for the quarter grew 22 per cent YoY to Rs 813 crore.

Commenting on the results, Sandeep Kumar Reddy, MD, Gayatri Projects said “FY17 has a been a good year for us, a year wherein we have significantly transformed and strengthened our core EPC construction business – focusing on an asset-light business model. The transformation has supported current government’s focus on infrastructure sector investments.”

According to a media report last year, IDFC Alternatives Ltd, the asset management arm of Infrastructure Development Finance Co. Ltd was looking to buy partner Gayatri Projects Ltd’s controlling stake in two road projects.

Gayatri Projects’ scrip was trading at Rs 177.75 each, up 5.21 per cent on BSE in a weak Mumbai market on Friday at 12.22 PM.

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