Loss-making civil contractor Gammon India has initiated talks with investors to sell up to 24% stake in its listed subsidiary, Gammon Infrastructure Projects, company executives said. The 100-year-old company, which is in the midst of a severe cash crunch, is exploring the option of divestment in its subsidiaries to raise up to 1,000 crore.Project slowdown in the domestic market has hurt Gammon's revenue and its European subsidiaries are making losses even as costs continue to rise. Proceeds from the planned divestment will help the company pare its debt of around 3,500 crore."We need to raise at least 1,000 crore and infuse into the company to reduce our financial stress and prepare the company for the next round of growth," Parvez Umrigar, group director of Gammon India, told ET. "We are looking at divesting stake in GIPL and in the holding companies of our other businesses such as real estate and power equipment. We are also looking to sell stake in some of our special purpose vehicles.

Source - http://economictimes.indiatimes.com