GMR Infrastructure to sell stake in Indonesia mine to raise $400 million

In order to reduce its debt fur­ther, GMR Infrastructure is pl­anning to sell a 30 per cent stake in its Indonesian coal mine to raise up to $400 million.

Bankers said PT GEMS coal mine stake, which has been recently relisted in the Indonesian stock markets, will be sold at a discount of at least 10 per cent as compared to the current market price.

"This can bring down net debt beyond corporate debt to Rs 18,000 crore versus Rs 30 billion of FY20 Ebitda (earnings before interest, tax, dep­reciation and amortization,” said a source close to the development. For the 2021-22 fiscal year, GMR’s consolidated debt was Rs 32,395 crore on revenues of Rs 5,199 crore. It made a loss of Rs 3,428 crore.

GMR had acquired 30 per cent stake in PT GEMS for $550 million in March 2018. But soon the company started facing a mounting debt problem as cash flows started drying up. The group then started selling stakes in various projects to bring down its debt. In March last year, GMR sold 50 per cent stake in its airport business to French airport firm Groupe ADP for Rs 10,700 crore.

Later, in September last year, GMR had announced sale of its 51 per cent stake Kakinada SEZ to Aurobindo Realty for Rs 2,610 crore.

Bankers said the company’s related debt will be further brought down on realisation of claims from the National Highway Authority of India (NHAI) for its projects. The debt will also reduce following conversion of foreign bonds into equity and receiving the remaining proceeds of the Kakinada stake-sale, the banker said. The group also sold stakes in power projects to reduce its debt.

GMR Infrastructure did not comment on an emailed query on the matter. GMR Infrastructure stock closed 5.18 per cent to Rs 32.50 on Tuesday.