Tag: GMR Infrastructure

GMR Airports Infra to merge subsidiary with itself, raise Rs 2,900 crore from Groupe ADP

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

GMR Airports Infrastructure, the erstwhile GMR Infra Ltd., has announced a Composite Scheme of Amalgamation and Arrangement of GMR Airports (GAL) with GMR Airports Infrastructure. Post the completion of the merger, GMR Airports Infra will continue as a listed public entity.

The merger is expected to be completed within the next financial year following relevant approvals.

GMR Airports Infra will also raise Rs 2,900 crore from Groupe ADP via Foreign Currency Convertible Bonds (FCCBs), which will be due in 2033. The FCCBs will convert at a price of Rs 43.67, which is a premium of 10 percent to the FCCB regulatory floor price.

The proceeds from this fundraise will be utilised in repaying corporate debt and settle most of the contingent liabilities related to GMR Power and Urban Infra.

GMR Airports Infra entered into a strategic partnership with Groupe ADP in early 2020, whereby Groupe ADP agreed to purchase a 49 percent stake in GMR Airports. At the time of the transaction, Groupe ADP had pegged equity earnouts of nearly 8 percent of GMR Airports and cash earnouts of Rs 1,060 crore to GMR Airports Infra.

Also Read: Does the global banking crisis put Indian banks at risk? CNBC-TV18 analyses

GMR Airports Infra & Groupe ADP will settle the cash earnouts to the former at Rs 550 crore and the equity earnouts whereby GMR Airports Infra Ltd.’s stake in GMR Airports Ltd. will increase to 55 percent from 51 percent pre-merger.

Upon completion of the merger, GMR Group will remain the single largest shareholder of GMR Airports Infra, with a 33.7 percent stake, Groupe ADP will hold 32.3 percent, while the remaining 34 percent will be public shareholding.

Post the merger, the GMR Group would continue to have management control over the merged entity, while Groupe ADP will be categorised as co-promoters of GMR Airports Infra, and have commensurate board representation.

“Our strong partnership with Groupe ADP emanating from combined resources and expertise will enable the Company to capture fast-growing airport business opportunities and maintaining our leadership position in the airport business,” GMR Group Chairman GM Rao was quoted as saying.

GMR Airports Infra was also part of CNBC-TV18’s dealing room chatter on Friday, where Nimesh Shah reported on the company planning to raise funds through FCCBs through a large investor and also a potential corporate announcement with regards to a reverse merger.

Shares of GMR Airports Infra have risen 5 percent so far this year.

Also Read: Hindenburg fallout: Adani Group suspends work on Rs 34,900 crore petchem project

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

GMR Airports arm raises Rs 850 crore via issuance of NCDs on a private placement basis

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

GMR Hyderabad International Airport (GHIAL), a subsidiary of GMR Airports and a step-down subsidiary of GMR Airports Infrastructure has successfully raised funds through the issuance of 10-year, listed, rated, redeemable, secured non-convertible debentures (NCDs).

The NCDs, amounting to Rs 840 crore will be listed on the BSE.

The NCDs have been priced at an interest rate of 8.71 percent per annum payable quarterly for an initial period of five years, and thereafter, the interest rate will be reset for next five years.

The issue has been subscribed by eligible investors (QIBs, registered under SEBI).

The proceeds from the NCDs will be utilized for partial refinancing of $100 million of the existing foreign currency bonds (FCBs) of 2024, for which, tendering has been completed, along with accrued interest and other tender offer/issue expenses.

Also Read | GMR Airports Infra Q3: Exceptional gain aids profit, passenger traffic rises 37%

This is GHIAL’s second listed transaction in the domestic debt market and the response from the investors has been overwhelming, according to the management.

“The successful pricing of the offering underscores investors’ confidence in GMR Group and credit strength of GHIAL”, GMR Group Chairman, Grandhi Kiran Kumar said.

GMR Airports Infra reported a net profit of Rs 191.4 crore in the December quarter versus a net loss of Rs 626.3 crore on a year-on-year basis. EBITDA margin however slipped to 30 percent with a 26 percent decline in its operating profit.

Shares of GMR Airports Infrastructure are trading 0.8 percent higher at Rs 39.15.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

GMR Airports shares gain 4% after Mactan Cebu Airport stake sale

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”GMR Airports” isinid=”INE776C01039″ bseid=”532754″ nseid=”GMRINFRA” sector=”Infrastructure – General” exchange=”nse”]

Shares of GMR Airports International gained as much as 4 percent on Monday after it received Rs 1,390 crore as total consideration from a stake sale in the Mactan Cebu airport.

The company, in September 2022, announced signing a deal with Aboitiz InfraCapital for the sale of its stake in GMR Megawide Cebu Airport Corporation (GMCAC), which is the operator and developer of Mactan Cebu International Airport in Lapu Lapu city of the Philippines.

GMCAC was a joint venture between GMR Airports International BV (GAIBV) and Megawide Construction Corporation (MCC).

GMR Airports said that it will continue to operate as the technical services provider to GMCAC until December 2026 and will also be entitled to additional deferred consideration based on the subsequent performance of GMCAC for the same period.

GMR Airports Infrastructure Ltd. (formerly known as GMR Infrastructure Ltd.) is engaged in the development, operation, and maintenance of airports along with offering integrated security solutions. Its subsidiary GMR Airports Ltd. (GAL) is the largest private airport operator in Asia and the second largest in the world with a passenger handling capacity of over 189 million annually.

Shares of GMR Airports Infrastructure Ltd. are trading nearly 4 percent higher at Rs 43.10.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

GMR lenders agree to restructure energy subsidiary’s loan

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

[wealthdesk shortname=”GMRP&UI” isinid=”INE0CU601026″ bseid=”543490″ nseid=”GMRP&UI” sector=”Power Generation/Distribution” exchange=”nse”]

Creditors of GMR Warora Energy Ltd. have agreed to restructure its debt through a Resolution Plan (RP), the company said in an exchange filing.

GMR Warora is the step-down subsidiary of GMR Power & Urban Infra. The restructuring will be done under Reserve Bank of India guidelines pertaining to the Prudential Framework for Resolution of Stressed Assets, 2019.

Both State Bank of India, which is the lead bank for the debt, and Axis Bank, the lead bank to lending Working Capital for the subsidiary have approved the resolution plan.

As per the resolution plan, GMR Warora will repay the sustainable as well as unsustainable debt based on the revised payment schedule. The existing working capital facilities of Rs 580 crore which has been sanctioned by the WC consortium led by Axis Bank, will continue to be in place.

The interest rate on the company’s sustainable debt worth Rs 2,350 crore will be revised to 8.5 percent per annum and will be linked to the Marginal Cost of Lending Rates (MCLR) while unsustainable debt, including accrued interest worth Rs 788 crore will have an interest rate of 0.01 percent per annum.

The total loan amount will now be repaid over a period of 15 years, which is higher by seven years from the existing repayment schedule.

GMR Warora was an Special Purpose Vehicle (SPV) of the GMR group to develop a 600 MQ domestic coal-based thermal power plant in Maharashtra. Delays in commissioning meant project costs jumped to Rs 4,250 crore from the initial Rs 3,480 crore. The SPV defaulted on interest payments on its loans and bonds last year.

The GMR Group acquired GMR Warora from EMCO Energy in 2009 for an undisclosed price.

GMR Infra demerged the airport business in January this year as part of its rejig plan to simplify the corporate holding structure. It also guided to bring corporate debt down to zero, without specifying any timeline for the same.

Also Read: GMR Infra hits 10-year high as firm demerges Power and Urban Infra unit from airport business

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

GMR Infrastructure gets NCLT nod for demerger of non-airport business

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

GMR Infrastructure on Thursday said it has received approval from the National Company Law Tribunal for the restructuring plan involving the demerger of the non-airport business.

GMR Infrastructure had unveiled the rejig plan on August 27 last year, to simplify the corporate holding structure and to attract sector-specific global investors.

“The Hon’ble National Company Law Tribunal, Mumbai Bench, has sanctioned the composite scheme of arrangement amongst GMR Power Infra Limited (GPIL), GMR Infrastructure Limited (GIL) and GMR Power and Urban Infra Limited (GPUIL) and their respective shareholders under Sections 230 to 232 of the Companies Act, 2013,” it said in a statement.

The sanction was pronounced by the tribunal on December 22, 2021.

On August 27 last year, the board of GMR Infrastructure together with other group companies — GPIL and GPUIL — had decided on a composite scheme of the arrangement including the demerger of the non-airport business of GMR Infrastructure.

“Separate listing of both the airport and non-airport businesses will also help in simplifying the corporate holding structure. The vertical split demerger will go a long way in facilitating a deeper understanding of the airport business independently as compared to other business verticals within the group,” GMR Infrastructure had said.

Currently, the GMR Group operates the Indira Gandhi International Airport in New Delhi and Hyderabad’s Rajiv Gandhi International Airport. It also operates the Cebu airport in the Philippines. Its energy business has a diversified portfolio of around 4,995 MW generation capacity.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Momentumisers: Key factors behind GMR Infra’s surge

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Yesterday, September 20, the market ended virtually at a low point. Nifty was down close to a percent, but GMR Infrastructure was a big outperformer because it ended with a gain of around 7 percent.

However, in the last one year or so, in September 2020, the stock was at a 52-week low at Rs 20 and yesterday, it hit a fresh 52-week high. Therefore, in the last one year or so, its performance has been more or less in line with what is seen on the Nifty, with a gain of around 55-60 percent or thereabouts.

Yesterday, the volumes were much higher. So, volumes were up by seven times in comparison to the average and not just that, the delivery volumes as well were nearly five times what is seen on an average.

Also Read: GMR Infra gets Rs 1,692 cr in first tranche from stake sale in Kakinada SEZ

So, good volumes, a big upmove is what we saw and a big build-up in the futures market as well. So, 60 lakh shares getting added, not just in this contract, but even in the next contract – that’s the October series contract. So, big addition there.

Also Read: Government intends to spend strongly on infrastructure, says Sanjeev Sanyal

In terms of levels, the 20-day moving average (DMA) is the closest support at around Rs 30.50 approximately. So that should be the near-term support. Otherwise, the stock really caught the eye, in an otherwise dwindling market, did very well.

Watch the accompanying video of CNBC-TV18’s Nigel Dsouza for more details.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow