Infrastructure major GMR Group, which is on an investment holiday this year, may extend it beyond March next year.
The company, which is scouting for long-term equity investors, hopes to find them over the next six to nine months.
“Our current focus is to consolidate existing operations before looking at any new projects. We will review it at the end of this year. And if it calls for extension of investment holiday, we will do it,” GMR Group Chief Finance Officer A. Subba Rao told
The Group feels it is incorrect to say that it has diversified far too soon in too many fields, and is hence, looking to divest its stake now.
PROBLEMS apenty
“Had the business and industrial scenario continued to be good, we would not have had to do this (divest). It is because the equity valuation has not increased. Starting with the global crisis in 2008, there has been one or other factor,” he said.
For instance, the power sector, where the group has the maximum investment, is plagued by problems of fuel, gas, coal, distribution issues, which have dragged down value.
He clearly said for the highway segment, the Group was looking at divesting equity to long-term investors, who could be global players in the same sector, or pension and sovereign funds. “We are not for investors who are looking to exit in three or four years,” he said.
CAG REPORT
On the recent CAG report on Delhi Airport, Subba Rao said the auditor’s methodology was not correct.
“The report is not holistic, as it does not consider all aspects of the bidding.
“Moreover, (Delhi airport) has been transparently bid out. GMR has not got any undue benefits, as it was based on a competitive bidding process.
“We gave the highest revenue share and we were the only bid that qualified for both Mumbai and Delhi on merits. When you offer project on competitive bidding, where is the question of loss,” he said.