Gayatri Highways has completed the sale of 49% of its total paid-up equity share capital in associate company HKR Roadways Limited. The transaction was finalized on September 2, 2026.

The company had entered into a Securities Purchase Agreement for the divestment on February 12, 2026. Gayatri Highways previously disclosed that the sale would be completed on or before September 30, 2026, subject to certain conditions obligated under the agreement by HKR Roadways Limited.

Transaction Details

The completion of the stake sale fulfills the regulatory requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company submitted the necessary details pursuant to Schedule III of the regulations and SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Key aspects of the disclosure include:

• The agreement for the sale was executed on February 12, 2026.
• The expected date of completion was initially set as September 30, 2026.
• The actual completion date is September 2, 2026.
• The transaction involves the disposal of a stake in an associate company.

Gayatri Highways confirmed that all required information regarding the turnover, revenue contribution, and net worth of the associate company during the last financial year has been filed with the stock exchanges. The updated disclosure incorporating the completion details has been enclosed as Annexure-1 in the filing to BSE and NSE.

Gayatri Highways has completed the acquisition of a 23% equity stake in HKR Roadways Limited from Kotak Special Situations Fund. The transaction was finalized on August 27, 2026, involving the purchase of 10,67,729 fully paid-up equity shares with a face value of ₹10 each.

The acquisition marks the successful conclusion of the process initiated in February 2026. Gayatri Highways had previously disclosed the proposal to acquire the stake, initially targeting completion by June 30, 2026. An update in June extended the indicative timeline to September 30, 2026. The final closure on August 27 falls within this revised window.

Transaction Details

The deal was executed for cash consideration. The specific cost of acquisition and the price per share were determined at the time of consummating the Securities Purchase Agreement, as per standard regulatory disclosures. The transaction does not constitute a related-party transaction, and the promoters or group companies of Gayatri Highways hold no prior interest in the target entity.

Gayatri Highways confirmed that it obtained the necessary approval from the Roads & Buildings Department, Government of Telangana, for this investment. The company submitted the required details under Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with the relevant SEBI circular dated January 30, 2026.

Target Company Profile

HKR Roadways Limited operates in the infrastructure sector, specifically managing the four-laning of the Hyderabad-Karimnagar-Ramagundam Road (SH-1) in Andhra Pradesh. The project is structured under a Public-Private Partnership (PPP) model on a Build, Operate, and Transfer (BOT) basis. The entity collects tolls, charges, and fees from users as per its concession agreement with the Andhra Pradesh government.

Incorporated on August 9, 2010, HKR Roadways has shown consistent revenue growth over the past three fiscal years. The financial trajectory highlights the scale of the asset being acquired.

Strategic Rationale

Gayatri Highways stated that the investment aligns with its core business in the infrastructure industry. The company noted that the acquisition would be beneficial for its future growth prospects. By securing a significant minority stake, Gayatri Highways expands its footprint in the toll road segment without taking on the operational execution risks associated with greenfield BOT projects.

What the Numbers Show

The revenue figures for HKR Roadways indicate a steady upward trend in toll collections. Revenue rose from ₹22,539.75 lakh in FY22-23 to ₹26,402.61 lakh in FY24-25. This consistent growth suggests stable traffic volumes on the Hyderabad-Karimnagar-Ramagundam corridor, providing a predictable cash flow stream for the new shareholder. The absence of promoter interest in the target company prior to this deal implies a clean entry for Gayatri Highways into this specific asset.