GMR Infra to raise up to $1 billion

Bangalore-based GMR Infrastructure, flagship company of the GMR Group, is planning to raise up to $1 billion to fund growth. The company's board, which met this evening here, decided to seek shareholders’ approval for this. An extraordinary general meeting (EGM) of the shareholders would be held on June 9, 2009, to pass an enabling resolution in this regard, a senior company official said.

However, the ways the capital will be raised will be decided after the EGM nod. “We have various options and depending on the market conditions, we will decide the exact route to raise the capital. It could be through a private equity route or dilution of equity. An appropriate decision will be taken just before raising the money,” GMR Group Chief Financial Officer A Subbarao told Business Standard. He said the company aimed to utilise the capital to bid for new projects in highways and energy that are expected in the next few months after a new government takes charge at the Centre. The National Highway Authority of India had several projects coming up and the company was preparing for those, Subbarao said.

In December 2007, GMR Infrastructure had raised over $1 billion through qualified institutional placement.

GMR has been aggressive in bidding for highway, energy and airport projects as well as overseas acquisitions. Recently, it acquired a coal mine in Indonesia for $100 million and is currently in the process of developing the mine.