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GMR Infrastructure Ltd is in talks with three private equity investors to raise about $200 million through the sale of stakes in a number of road projects, three sources with direct knowledge of the matter said.

Talks are being held with a fund jointly managed by State Bank of India and Australia's Macquarie Group; UK-based 3i Group Plc; and IDFC Project Equity, a fund managed by India's Infrastructure Development Finance Co , said the sources, who declined to be named.

GMR is also looking at an eventual initial public offering of its road assets, the sources said.

The infrastructure company, which builds airports and power projects as well as roads, is looking at completing the sales process by June, one of the sources said.

GMR's road sector contributed about 5 per cent of the company's overall revenue of Rs 19.99 billion in the December quarter.

GMR Infrastructure, IDFC, 3i and SBI-Macquarie all declined to comment.

Most of the funds raised will be used to build the $1.6 billion Kishangarh-Udaipur-Ahmedabad highway, which will connect the northern state of Rajasthan and the western state of Gujarat.

Funding requirements for the 555 km (345 mile) highway and for other projects would put pressure on GMR's balance sheet, Goldman Sachs said in a note earlier this month.

GMR shares closed 7.14 per cent higher at Rs 27.75. The benchmark index .BSESN closed up 1.64 per cent.

Private equity investments in India's infrastructure sector fell by almost a quarter in 2011 to $2.6 billion, according to KPMG, as an economic slowdown stalled investment decisions.

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