- Ex-Date: 11-03-2015
- Record Date: 12-03-2015
- Ratio: 3:14 @ Rs.15/- per share
- Last Date of Application: 07-04-2015 (before 3:00 P.M)
Meanwhile, there were media reports that GMR Infrastructure will acquire shares from investors in its subsidiary GMR Airports as the company looks to consolidate its holdings.
GMR is a diversified group with presence in airports, power and other sectors.
In a regulatory filing, GMR Infrastructure said it has "decided to exercise the Call Option requiring the respective investors to transfer the Compulsorily Convertible Preference Shares (CCPS) of GMR Airports Ltd to the company".
GMR Infrastructure’s consolidated debt as on March 31, 2014 was Rs.45,000 crore. It will come down as 90% of the rights issue proceeds will be used to repay debt.
The promoters have already secured funds to subscribe to their share of the rights issue. With the capex phase behind and the last large power project (1.4 Gw Chhattisgarh power plant) to be operational shortly, GMR’s cash flow is set to improve in the coming days.
Over the past few years, GMR has been focusing on strengthening its balance sheet. It began with hiving off assets and it is now infusing equity.
According to analysts, such de-leveraging will bolster operational improvement through commissioning of under-construction projects.
In the past 18 months, through strategic divestment, the company has released equity worth Rs.3,834 crore and reduced its liabilities by Rs.6,180 crore. The company’s capex is now close to end and its assets have now moved from construction to operational phase.
There were also recent media reports that GMR Infrastructure plans to raise Rs.4,000 crore over the next one year through divestment of assets and share sale to reduce debt and ease cash flow.
The loss-making infrastructure company plans to divest projects, monetise land assets and sell stake at holding company level to raise funds. It has put a freeze on capital expenditure for the next 2-3 years.
The lead bankers for the rights issue are JM Financial, Axis Capital Holdings, ICICI Securities and SBI Capital Markets.