GMR looks to raise 6,700 cr
Infrastructure major GMR Group is looking to raise about $1 billion (nearly Rs 6,700 crore) by selling some stake in its airports and energy businesses over the next two years.
To sell stakes in airports, energy businesses; Plans to use the funds to cut down debt
Hyderabad: Infrastructure major GMR Group is looking to raise about $1 billion (nearly Rs 6,700 crore) by selling some stake in its airports and energy businesses over the next two years.
The Bangalore-based Group founded by GM Rao will use the proceeds to cuts down its debt, totaling a whopping Rs 41,000 crore, and fund its future growth plans. The infrastructure major has already held initial talks with some investors about selling stakes in the two businesses.
“A part of the funds raised will be used to repay debt. We may also grow into the renewable energy space, or look at a small expansion into our existing energy business. We are now in the turnaround phase,” Madhu Terdal, Chief Financial Officer, GMR Group, was quoted as saying by Reuters news agency.
The CFO, however, denied the media reports appeared on Monday that said Toronto-based Fairfax Financial Holdings and Singapore's Changi Airports International were in discussion with the Group to take 30 per cent stake in the airports business for about Rs 3,200 crore.
"GMR Airports are jewels in the crown. We are not going to do in a hurry anything just because we are under stress at the group level," he said.
The diversified conglomerate is into a range of sectors including airports, energy, roads and urban infrastructure. In airports space, it owns and operates the country’s busiest Delhi International Airport as well as Hyderabad International Airport developed as Greenfield airport. It also operates Mactan Cebu International Airport in Phillippines. In energy sector, it currently has several power plants with total installed capacity of 2,500 MW under operation. Besides, plants of over 2,300 MW generation capacity are under advanced stages of completion and nearly 3,700 MW of projects are under various stages of development in India and Nepal. GMR’s financial performance in power space improved in recent times owing to the increased availability of coal and a number of new power purchase agreements (PPAs) it signed.
"We are doing a slew of things so that in the next 12-18 months we are ready for growth," the CFO maintained.