GMR Infra: Debt reduction positive, but street cautious

Analysts are looking forward for signs of steady flow in revenue and profits for the consolidated entity

GMR Infrastructure (GMR) continues utilising its fast-growing airports business to improve its future prospects. After a recent move to monetise 10 million square feet of area at its Delhi airport, on Wednesday GMR announced a deal to raise Rs 8,000 crore from marquee long-term strategic and financial investors through equity investment in the airports business, GMR Airports (GAL). As the proceeds will be utilised for debt reduction, GMR also intends to demerge its energy, highways and, urban infrastructure & transportation businesses, a move long awaited. 

The proposed investment by Tata Group, GIC Singapore’s sovereign wealth fund and SSG Capital in