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GMR Infrastructure forms panel to 'spin off' airport biz

GMR Infrastructure forms panel to spin off airport biz

Hyderabad: GMR Infrastructure Ltd has said it has constituted a sub-committee of its board for a possible spin-off of the airport business as it sees a $100-billion investment opportunity in India.

According to a regulatory filing with bourses Thursday, the company has already received multiple proposals from the investors for the airport business, which are currently being evaluated and shall be placed at the meeting of the newly constituted sub-committee.

"We wish to inform that the board of directors of the company at its meeting held on February 14 approved the constitution of the sub-committee to consider and evaluate options of demerger to unlock shareholder value in the existing business of the group," the filing said.

The consideration and evaluation of option of demerger would pave way for the next phase of growth considering the stated intent of the government for faster privatisation of airports in the country, which is a $100-billion investment opportunity, it said.

Besides, the demerger would raise equity capital in the airport business and accelerate the de-leveraging of company, the filing said. In a press release, GMR Infrastructure Limited has said it suffered Rs 561.04 crore loss for the quarter ended December 31, 2018 against Rs 578.40 crore loss for the same quarter in FY18. According to a regulatory notice filed Thursday night, the infra major said the total income during the quarter under discussion stood at Rs 2,119.87 crore down from Rs 2,276 crore in Q3FY18.

The power vertical of the group continues to be reeling under losses with Rs 184.48 crore during the third quarter offsetting Rs 364.74 crore profit for the airports segment.

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

The company also emerged as successful bidder for Nagpur Airport, the release said.

GMR currently runs international airports in Delhi and Hyderabad in the country and was in the process of constructing one in Goa.

The group, along with Megawide Constructions, runs an international airport in the Philippines.

Delhi airport made a profit of Rs 156 crore during the October-December quarter while Hyderabad aerodrome earned Rs 216 crore as profit.

Profits from the Cebu Airport in the Philippines stood at Rs 43 crore in the December quarter.

PTI

PTI

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