GMR Infra zooms 10% on proposal to list airport business, pares gains later

Shares of GMR Infrastructure advanced 10 per cent and hit a fresh 52-week high of Rs 28.25, in the early morning deals, on the BSE on Friday after the company decided to separately list its airport business. The company’s board on Thursday passed a proposal that will see the holding company, GMR Infrastructure, demerge into airport and non-airport entities.

According to the restructuring process, the non-airport business, comprising energy, urban infrastructure, and EPC services, will be moved to GMR Power and Urban Infra Ltd (GPUIL) as a going concern. GMR Infrastructure Ltd (GIL) will turn into a pure-play airport-owning company, becoming the first airport company to be listed in Indian stock exchanges.

After the demerger, shares of GPUIL will be allotted to all shareholders of GMR Infra. With that, the existing shareholders of GIL will become shareholders of GPUIL in the same proportion. The scheme envisages issue of one additional share of Rs 5 each of GPUIL for every 10 shares in GIL of Re 1 each as on April 1, 2021. READ MORE

On the results front, the company on Thursday, after market hours, reported consolidated net loss of approximately Rs 834 crore as against Rs 336 crore loss in the January-March period in FY20. The consolidated total income for the quarter under review almost halved to Rs 1,224 crore. It was Rs 2.206 crore in Q1FY29, the management said in a regulatory filing.

"The Group has incurred losses primarily on account of losses in the energy and highway sector with a consequent erosion of its net worth, delay in debt and interest servicing, and lower credit ratings for some of its borrowings," GMR said. 

At 9:50 am, the stock pared most of its gains later and was up just 1 per cent at Rs 29.05 apiece. In comparison, the S&P BSE Sensex was up 0.6 per cent.