GMR gets nod to raise up to Rs 2,500 crore

GMR Infrastructure has been active in reducing debt and during the past 18 months has reduced as much as Rs 6,000 crore

GMR Infrastructure has received the approval of its shareholders to raise up to Rs 2,500 crore through multiple instruments. This will primarily be used to reduce the corporate debt which is at Rs 4,500 crore and also to infuse equity into another power project in India in Chattisgarh.

The company also enhanced its authorised share capital from Rs 750 crore to Rs 1,950 crore to make a preferential allotment to a group of private equity investments led by Singapore-based Temasek and India's IDFC Group.

GMR Infrastructure, which is under a debt of close to Rs 40,000 crore across various of its projects, has been active in reducing debt and has during the past 18 months reduced as much as Rs 6000 crore and along with it, GMR has managed to release additional cash flow of Rs 4,000 crore.

"We divested our holdings in a airport in Turkey as well as exited our presence in the power project in Singapore. In addition to this, we have offloaded majority stakes in two highway projects, which is helping us. We continously scan the situation and if there is a good opportunity to monetise, we will surely look at it," G M Rao, chairman, GMR Infrastructure told shareholders at an EGM on Thursday in Bangalore.