Gayatri Projects shares retreat

Hyderabad: After rising over four per cent on Monday, shares of Gayatri Projects on Tuesday eased 3.99 per cent or Rs1.75 to Rs42.10 on BSE. The stock was in focus after signing an MoU for exploring fund infusion options.

According to media reports, New York-based fund Interups set to buy 49 per cent stake in Gayatri Projects, which is flagship company of diversified Gayatri Group. Indian born Laxmi Prasad-led Interups Inc is in talks with the company to buy 49 per cent stake. The company said that it's been in the process of exploring funding options to manage the tight liquidity situation.

Sources said that the company, after preliminary discussions, signed the MoU on July 23, 2021. The due diligence process with a 90 day exclusivity period for signing definitive documents is in the process.

Gayatri Projects in its regulatory filing said: "Any potential deal will be subject to successful completion of the due diligence process, the ability of the investor to arrange sufficient capital, receipt of approval from investors' investment committee/, multiple statutory/regulatory bodies, agreement on representation & warranties/ indemnities, etc."

The company also informed the stock exchange that it would inform if anything definitive develops in this context.

Gayatri Projects further added that as per the terms of MoU, if the transaction proceeds towards actual investment, GPL shall use the proceeds from investment primarily for business development, capital expenditure and repayments including reduction and zeroing debt, working capital requirements of GPL and if so required for such other acts and deeds as the parties mutually agree on time-to-time.