Mumbai-headquartered engineering and construction company Gammon India Ltd has agreed to divest 75 per cent equity stake in Transrail Lighting Ltd, which houses its tower and conductor manufacturing business, to financial information services provider Bilav Software Pvt Ltd, as per a stock market disclosure.
The two companies have signed an investment cum shareholders agreement. As per the pact, Bilav Software will pick 75 per cent equity stake in Transrail Lighting from Gammon for an undisclosed amount and will separately infuse Rs 47 crore in two tranches in the firm by subscribing to optionally convertible debentures.
An email sent and phone calls made to Gammon India seeking further information on the development went unanswered.
Gammon India has also received approval from its board of directors to transfer a part of its T&D business to Transrail Lighting by way of a slump sale on a going concern basis.
The T&D undertaking essentially comprises tower and conductor manufacturing through its facilities at Deoli and Silvassa, respectively, along with related assets, liabilities and employees.
“The transfer of T&D undertaking... is in line with the company's strategy to consolidate the entire T&D business of GIL into Transrail Lighting to enable investments by strategic investors,†it said in the statement.
Transrail Lighting designs, manufactures, tests, installs and supplies galvanised steel poles for transmission and distribution monopoles, street light poles, high mast, stadium mast, telecom monopoles, etc.
Founded in 1922, Gammon India is an infrastructure construction company which operates in three segments—construction & engineering, oil exploration and realty development.
Recently, Gammon India’s arm Gammon Infrastructure Projects Ltd (GIPL) agreed to divest nine road and power projects to funds managed by global asset manager Brookfield and an infra fund run by Kotak Private Equity.
On the other side, Mumbai-based Bilav Software is a provider of financial information related to corporate actions of listed Indian companies.