October 14, 2008

GMR Infrastructure to raise INR 5,000 crore

BS reported that Bangalore based infrastructure company GMR Infrastructure is looking set to tap overseas markets to fund its expansion plans and is seeking a shareholders’ approval to raise up to INR 5,000 crore through various financial instruments including or either foreign currency convertible bonds, global depositary receipts and American depositary receipt.

GMR Infrastructure is also increasing its authorized share capital to INR 750 crore from the current INR 400 crore. In addition to raising resources through equity dilution, it is also seeking to double its debt limit to INR 10,000 crore.

GMR Infrastructure is already involved in revamping the Delhi international airport and is close to completing a Greenfield international airport in Hyderabad. It is also in the process of kick starting work on various power projects involving a total capacity of around 1,500MW. GMR Infrastructure has recently bagged a contract to revamp an airport in Turkey. GMR and 2 other international partners will form a consortium, in which it will hold a 40% stake to execute the project. The project cost is close to USD 600 million and a concession fee of around USD 2.2 billion is payable over 20 years.