Gammon Infrastructure Projects Ltd. surges in trade. Know why

Gammon Infrastructure Projects Ltd., a developer of roads and power producer, surged in trade after the company announced it would divest 9 projects in a bid to raise funds to cut heavy debt.

Gammon said it would sell three of its power projects, spanning coal, hydro and renewable energy, and six road projects in various parts to the country to raise cash. These projects will be sold to BIF India Holdings Pte Ltd.

The road projects are situated in various parts of India such as Gorakhpur, Rajamundary, Vijaywada, Nasik and Andhra Pradesh. The sale proceeds will help the company cut debt to 2,229 crore rupees from 3,947 crore rupees.

As a consequence, Gammon Infra surged 5.3 percent to 12 rupees on the National Stock Exchange where 34 lakh shares were traded. The company's market capitalisation has fallen 8 percent to 1,075 crore rupees over the past one year as investors mostly stayed away from debt-laden infrastructure stocks.

Image credit: Indiatimes