In a bid to further ease up its debt burden, infrastructure major GMR Group could look at divesting a stake in its energy vertical over the next 12 months. The group has ₹6,500 crore of corporate debt and ₹41,000 crore of project debt. Since January it has refinanced debt of about ₹10,000 crore.

The group is keen to reduce its consolidate corporate debt, for which it has raised ₹2,000 crore through FCCBs. This has helping reduced the debt by 23 per cent.

The corporate debt is not backed by cash flows but its project debt of ₹41,000 crore, which is partly refinanced for the next 20 years, is backed by project revenues.

Group CFO Madhu Terdal told BusinessLine that the management is focused on turning around the businesses. “Earlier, there was real stress in the energy business due to environmental, fuel and regulatory issues. But today most of the gas- and coal-based power plants are fully functional,” he said

Business turnaround In March 2014, the EBITA was ₹22 crore and, by March 2015, it had risen to ₹222 crore. In the last two quarters it has risen to ₹380 crore, he said, adding that by the end of this fiscal it will go beyond ₹1,000 crore. So the group’s health has improved, he added.

Terdal further said that in such a scenario, the group could further reduce debt by getting a strategic or equity investor in the energy business. Even an IPO could be considered.

“These plans will not happen today but may happen in the next 12-18 months. Today the market is not ready for an IPO. But we are in touch with the investors,” he said.

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