Cos resort to distress sales of non-core assets
Similar is the case with DS Constructions, which was the concessionaire for the Delhi-Gurgaon Super Connectivity toll plaza but had to sell a 74% stake to prime lender IDFC at R1, which also took on the firmís R1,600-crore debt.
That valuations are not high and promoters are resorting to what can be termed distress sales is evident from the fact that while calendar year 2012 saw 374 inbound and domestic deals, higher than the 357 deals struck in 2011, the value of deals in 2012 fell sharply to $13 billion from $33 billion in 2011.
Take the case of GMR, which is present in airport development, power and roads. The group started selling non-core businesses in 2010 when it offloaded its stake in sugar company EID Parry for R110 crore. Today, with a total debt of nearly R37,000 crore, it is seeking to raise over R4,000 crore by selling five highway projects and also reduce stakes in