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The ₹8,000-crore investment by TRIL Urban Transport Private Ltd in GMR Airports Ltd (GAL) will help pare GMR Infrastructure Ltd’s (GIL) ₹12,000- crore corporate debt.
The proposed investment amount will consist of ₹1,000-crore equity infusion in GAL and ₹7,000 crore towards purchase of GAL’s equity shares from GIL and its subsidiaries.
According to officials in the know, TRIL Urban Transport Private Ltd (that is a part of the Tata Group) and an affiliate of GIC and SSG Capital Management will hold 44.4 per cent stake in GAL after the deal concludes. The company board will also be restructured in proportion to the stake with 3-4 new members on behalf of the investors being inducted into the GAL board. The business will continue to be controlled by the GMR Group.
Responding to queries from BusinessLine , Saurabh Chawla, Executive Director – Finance & Strategy at GMR Group, said, “Post the board approval, The GMR Group shall initiate process of a demerger of its verticals which will result in two mirror, listed entities. A committee of the board is currently studying all aspects of such a demerger. The first will be a pure play airport business. The other entity will have our power, ports and urban transport and roads businesses.”
“We intend to further sharpen our focus in the airport business. We have already restructured our energy business and have shed the non performing assets we were holding. We intend to continue in the energy business in partnership with Tenanga. We, however, would like to divest road and urban transport business at some point of time in the future. The demerger plans will be firmed up in the current financial year and we hope to complete them within the current fiscal year. The goal is to make GIL a corporate debt free company,” Chawla added.
Earlier this month, GIL had announced the signing of a definitive share purchase agreement with Adani Power Ltd for the sale of the company’s entire stake (47.62 per cent) in GMR Chhattisgarh Energy Ltd. This stake was held by its wholly-owned subsidiary GMR Generation Assets Ltd.
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