GMR Infrastructure to raise Rs5,000 crore debt, preferential issue

GMR Infrastructure, the flagship of the GMR Group, proposes to raise Rs5,000 crore (around $1 billion) through private placement of shares in domestic and international markets. The company also proposes to issue
preferential equity shares to IDFC Infrastructure Fund - India Development Fund, the filing added.

The board of the Bangalore-based infrastructure major, which met on Saturday evening, approved the raising of an amount not exceeding Rs5,000 crore, either through preferential issue or qualified institutional placement (QIP) or private placement of securities, GMR Infrastructure said in a filing with the Bombay Stock Exchange.

The board also decided to convene an extraordinary general meeting (EGM) of the shareholders on 9 June to pass an enabling resolution in this regard, a senior company official said.

The firm would issue equity shares or American Depository Receipts or foreign currency convertible bonds for raising the necessary funds.

GMR Infrastructure, which is focused in development of airports, power generation, highways and urban infrastructure, said with various projects, including highway projects in hand, it needs growth capital.

The company, however, claimed all its existing projects are funded and that the company is getting shareholders approval for raising growth capital for future projects.

GMR Infrastructure, with an existing debt of around Rs10,000 crore, is a highly leveraged company and has borrowed close to 1.2 times its net worth.

The company is engaged in the upgradation of the New Delhi airport, in addition building and operating a greenfield international airport at Hyderabad.  The promoters hold close to 75 per cent in the company and its total equity stake is worth Rs15,000 crore at current market price of Rs117 per equity share.