GMR Infrastructure, the holding company of the Rs 3,000-crore GMR Group, is set to hit the IPO trail in two months' time. It is expected that the company might raise close to Rs 1,000 crore through an IPO to fund its aggressive expansion plans in the infrastructure sector. | |
| Company officials indicated that May-end is a time-frame they are targeting for the issue. The company is going in for this IPO primarily to fund its greenfield airport project in Hyderabad and also for the modernisation of the Delhi airport. In addition to this, the group has interests in power generation and building highways. |
| |
| For the record, however, a GMR spokesperson said that they were ready for an IPO but the timing would be decided after the modernisation issue was vacated by courts. |
| |
| GMR Group in pact with Fraport recently won the bid to modernise the Delhi airport by beating stiff competition from Reliance. GMR-Fraport had initially offered 43.64 per cent revenue share to the government for the Delhi airport and eventually matched the highest bid of Reliance by offering 45.99 per cent revenue share. |
| |
| GMR increased its offer after it was given a choice to match Reliance's bid backed by the fact that GMR's bid was technically better. Reliance has dragged this issue to the court where it is pending. In terms of cash flow, the GMR-Fraport combine will have to pay Rs 150 crore to Airport Authorities of India (AAI) and invest around Rs 2,800 crore in Delhi in the first phase, expected to be completed by 2010. |
| |
| Besides this, GMR has also kick-started work for its Rs 1,760-crore Hyderabad International Airport Limited (HIAL), which is expected to start functioning from early 2008. GMR is financing this project through an equity of Rs 378 crore, debt of Rs 960 crore, interest-free loan from the Andhra Pradesh government (APG) of Rs 315 crore and a state support grant of Rs 107 crore. The project cost of Rs 1,760 crore, having a debt-equity ratio of 1.2:1, includes an additional contingency of Rs 97 crore. |
| |
| HIAL is a joint venture of GMR Infrastructure, Malaysia Airport Holdings Berhad (MAHB), AAI and APG. While GMR has a 63 per cent stake in the project, MAHB has 11 per cent equity holding and AAI and APG have 13 per cent shareholding each. |
| |
|
| |
