The step is in view of recent equity infusion into its various arms.
GMR Infrastructure, a Bangalore-based infrastructure company with interests in airports, energy and highways, has deferred plan to raise up to Rs 5,000 crore in view of the recent equity infusion into its various arms.
The company recently raised Rs 1,400 crore through a qualified institutional placement (QIP) at the entity level and Rs 1,395 crore from private equity (PE) funds Temasek and IDFC in its energy vertical.
“The resolution pertaining to issue of securities for an aggregate amount of Rs 5,000 crore was withdrawn considering the equity raised by the group through QIP and PE investments,” the company said in a statement after its annual general meeting.
Industry experts said the expected equity infusion of around $300 million (Rs 1,300 crore) from PE investors like SBI Macquire and IDFC into the company’s airport arm was also likely to ease its funding requirement in the near term. In addition to these plans, GMR Infra is actively looking to exit its 50 per cent holding in global energy firm Intergen for around $1.2 billion, which will further ease the interest payouts.
GMR Infrastructure has a debt of close to Rs 18,000 crore, a leverage of two times. Infrastructure firms usually comfortably leverage as much as three times, given the long period infrastructure projects take to start generating revenues.
However, the company said it would seek the approval of the shareholders as and when required, indicating its future fund-raising plan.
More From This Section
Meanwhile, the company received the board approval to increase the foreign institutional investor (FII) holding to 35 per cent. The FII holding in GMR was 13.65 per cent at the end of June. Analysts tracking GMR Infra said the enabling resolution to increase the holding indicated fund-raising through FIIs with dilution of promoters’ stake. The promoters hold a little over 70 per cent.
GMR, which sought shareholders’ approval to raise the borrowing limit to Rs 20,000 crore from Rs 10,000 crore, has received the approval for the same. Shareholders had approved the Rs 10,000 crore limit in 2007.
The company operates three international airports, including one in Istanbul, and has more than half a dozen power projects under different phases of operation. It has close to nine highway projects in its portfolio.
Though most of its projects have achieved financial closure, the company needs funds linkage for some of its upcoming projects.
GMR Infrastructure posted a net profit of Rs 28.4 crore during April-June, up by 26 per cent over corresponding period last year. It registered a modest 4.6 per cent rise in top line to Rs 1231.4 crore during the period.