GMR Infra looks to raise up to Rs 2.5k cr

The company has been shedding assets to generate cash and to meet its debt obligations

Fresh from shedding some of its key global assets, including an airport in Turkey and a power project in Singapore, GMR Infrastructure is gearing to raise up to Rs 2,500 crore even as it is close to clinching an airport-modernisation project in the Philippines.

The board, which met late on Friday, said they had authorised the company to raise these resources through various options, including foreign currency convertible bonds, a follow-on offer, a further public offer and private placement, among others.

The company, under debt of Rs 40,000 crore and with a gearing of 3.5 times, has been shedding assets to generate cash and to meet its debt obligations. GMR Infra had during 2010 raised $350 million through the qualified institutional placement (QIP) route. Till now, the company has not used an FCCB route to raise funds.

According to company sources, GMR Infra usually moves an enabling resolution during an annual general meet (AGM) to raise resources. Due to various reasons they did not opt for that during the 2013 AGM. A spokesperson said they would not be able to comment on how the funds would be deployed.  "This is an enabling resolution and depending on the timing and the opportunity we will move," an official said. It is understood that, even as GMR is close to clinching the project at the Philippines involving a cost of $400 million, the equity investment from GMR will be $45 million. GMR has been borrowing through various sources to fund its equity part into various projects. As a result, 57 per cent of the promoter's stake of 72 per cent has been pledged.

GMR, during the end of 2013, managed to divest its 40 per cent stake at an airport in Turkey for Rs 1,910 crore, preceded by a divestment of a power project in Singapore. Cumulatively, these two assets released equity of Rs 3,500 crore for re-deployment while reducing the debt Rs 5,000 crore.

GMR offloaded 74 per cent stake in two highway projects besides its holding at a mine in South Africa.

It is understood that GMR was further looking at divesting stakes in few more road assets besides another thermal power plant in India. It is understood that GMR is looking to shed an additional Rs 5,000 crore of debt within March 2014.

GMR stock lost 1.4 per cent to close at Rs 23.10 per share on BSE.