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The GMR Group is set to restructure its business with a vertical demerger wherein its airports arm will form one unit while GMR Power, Urban Infrastructure, Highways and EPC constituting will form another. Subsequently, GMR will list them as separate entities.
Having secured a ₹8,000-crore strategic investment from a Tata Group entity, GIC of Singapore and SSG Capital Management, GMR has embarked on a restructuring process across various sectors with a National Company Law Tribunal (NCLT) approved vertical demerger plan.
The company has already divested about 44.44 per cent of its stake in the airports business at a valuation of ₹24,800 crore, which includes earnouts of up to ₹4,400 crore. At the investor presentation after declaring its Q1 results, GMR said it has begun the process of obtaining regulatory approvals for the restructuring.
GMR said the demerger is aimed at demarcating the airport and non-airport businesses and unlocking their value. It has begun the process to obtain approvals from lenders. It plans to immediately file for a demerger scheme post completion of the equity transaction.
Restructuring scheme
Under the scheme, GMR Infrastructure, which runs GMR Airports, will be held 53.5 per cent by GMR and the public, 44.4 per cent by Tata, GIC and SSG, and about 2 per cent by an employee welfare trust.
The non-airport entities will be held under GMR Power and Urban Infrastructure, where GMR holds a 63.11 per cent stake and the public, 36.89 per cent. The vertical comprises GMR Energy, GMR Generation Assets and Others, GMR Highways and GMR SEZ and Port Holdings.
The group also plans to divest certain non-core highway and coal mine assets. About 13,000 acres of land can be monetised. The company recently completed the financial restructuring of its power assets in Rajahmundry and Chhattisgarh.
GMR has a capacity expansion plan now underway at the Delhi and Hyderabad airports. While the Delhi airport is likely to see a capex of ₹10,500 crore and take its passenger handling capacity to 100 million per annum, the Hyderabad airport is likely to see a capex of ₹6700 crore to expand passenger handling capacity to 34 million per annum.
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