GMR Infrastructure Ltd: Hold

CMP: Rs.18.8

There are recent media reports that the two financial institutions have released 13.5 crore shares in diversified GMR Infrastructure Ltd, that were pledged by the company's promoter GMR Holdings.

Around 7.45 crore shares were released by JM Financial Products on April 9 and 6 crore shares were released by SICOM Ltd on April 10, GMR Infrastructure said in a regulatory filing.

The 13.5 crore shares that were released translated into a 3.08% stake.

The value of 7.45 crore shares, based on April 10 closing price of Rs.18.80 a piece, is estimated at Rs 140.06 crore. While 6 crore shares are worth Rs 103.8 crore based on April 9 closing price of Rs 17.30.

Recently, a consortium led by GMR Infrastructure Limited was issued Letters of Award for construction of 417 Km long Eastern Dedicated Freight Corridor railway project at a cost of Rs.5,080 crore on EPC (engineering, procurement and construction) basis. The project is to be executed in two phases—first involving a 180 km stretch between Mughalsarai and Karchana (near Allahabad) and second involving a 237 km stretch between Karchana and Bhaupur (near Kanpur).

Meanwhile, GMR Infrastructure Ltd's rights issue which closed last week, was a tad oversubscribed. The company was expected to raise close to Rs.1,402 crore but have got Rs.1450 crore.