GMR Infrastructure rose 1.27% to Rs 13.54 at 10:00 IST on BSE after the company's subsidiary entered into definitive agreements with Adani Transmission to transfer the interest in its transmission projects.
The announcement was made during market hours today, 1 July 2016.Shares of Adani Transmission gained 4.41% to Rs 40.25.
Meanwhile, the S&P BSE Sensex was up 200.15 points or 0.74% at 27,199.87.
On BSE, so far 12.23 lakh shares were traded in the counter as against average daily volume of 14.53 lakh shares in the past one quarter. The stock hit a high of Rs 13.79 and a low of Rs 13.45 so far during the day. The stock had hit a 52-week high of Rs 18.60 on 3 December 2015. The stock had hit a record low of Rs 9.58 on 4 September 2015. The stock had outperformed the market over the past one month till 30 June 2016, gaining 16.26% compared with Sensex's 1.03% gains. The stock had also outperformed the market in past one quarter, rising 16.26% as against Sensex's 6.56% rise.
The mid-cap company has equity capital of Rs 603.59 crore. Face value per share is Re 1.
GMR Energy (GEL), a subsidiary of GMR Infrastructure (GIL), has entered into definitive agreements with Adani Transmission (ATL) wherein GEL has agreed to transfer the interest in its transmission projects - Maru Transmission Services (MTSL) and Aravali Transmission Services (ATSL) to ATL. Currently, 74% stake in MTSL and 49% stake in ATSL shall be transferred to ATL with an option to acquire the balance stakes in both the projects. The consummation of transaction is subject to applicable approvals.
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The equity consideration ascribed for the transaction involving both the projects is Rs 100 crore. The total value realizable for GEL could be Rs 220 crore considering this equity consideration and the expected upside of upto Rs 120 crore from regulatory proceeds of various appeals of the assets before the Appellate Tribunal For Electricity (APTEL). Post consummation of the transaction, the consolidated debt of GMR Group would be reduced. The total debt in the projects as on 31 March 2016 was Rs 324 crore.
GMR Energy was awarded two transmission projects on BOOM basis in 2010. MTSL operates 270 kilometers of 400 KV/220 KV transmission lines in Rajasthan. The project had achieved commercial operation date (COD) in 2013. ATSL operates 96 kilometers of 400 KV transmission line in Rajasthan. The project had achieved COD in 2014. All the three distribution companies of Rajasthan (Discoms) are the beneficiaries of the transmission services being provided by these Transmission SPVs. The transmission assets, MTSL and ATSL form a part of the excluded group of assets from the Tenaga transaction.
Speaking on the stake sale, Mr. GBS Raju, Business Chairman - Energy, GMR Group said GMR Group continues on the path of Asset Light Asset Right strategy. The deal will release further liquidity and deleverage the GMR balance sheet. The asset sale done at challenging market environment further signifies GMR's ability to create value for its stake holders, he added.
GMR Infrastructure's consolidated net loss stood at Rs 953.50 crore in Q4 March 2016, higher than consolidated net loss of Rs 891.90 crore in Q4 March 2015. Net sales rose 29.1% to Rs 3708.37 crore in Q4 March 2016 over Q4 March 2015.
GMR Group is a leading global infrastructure conglomerate with interests in airports, energy, transportation and urban infrastructure. The group has fifteen power generation projects, nine operating road assets and a double rail track line of eastern dedicated freight corridor under development.
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