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GMR Holdings, the holding company of publicly-held GMR Infrastructure, is understood to have to raised about Rs 150 crore through the non-convertible debenture route from global private equity (PE) major KKR (Kohlberg Kravis Roberts) in a highly-contested transaction that saw a lot of interest from various PE funds.
According to information available, GMR Holdings might scale this sum to Rs 600 crore over an 18-month period. This move by GMR Holdings to raise debt comes at a time when GMR Holdings had to infuse Rs 150 crore into GMR Infrastructure through a warrant issue. While a fourth of the Rs 600 crore has been infused, senior GMR officials told Business Standard that they have 18 months to decide how to raise the remaining Rs 450 crore at GMR Holdings level. GMR Holdings currently holds 62.74 per cent stake in GMR Infrastructure.
GMR Holdings is currently is under a debt of about Rs 1,000 crore - long-term debt of Rs 305.58 crore and short-term borrowings of Rs 713.97 crore in FY14 - besides Rs 476.12 crore of overdraft facility and Rs 234.84 crore from related parties.
According to information available, GMR Holdings is proposing to pay a 13 per cent internal rate of return on the yield calculated from the financing date until redemption and payable at redemption as accrued redemption premium. GMR Holdings has proposed to fork ordinary shares of GMR Infrastructure equivalent to 2.5x of the financing amount as of the financing date.
According to provisional financials of FY14, GMR Holdings’ total operating revenue stood at Rs 141.70 crore - a four-fold jump from Rs 33.96 crore in FY13. The increase is on account of higher dividend income and higher interest income.
The company has been incurring losses, mainly due to high interest and finance costs. The holding company has non-current investment of Rs 1,345.97 crore in FY14.
The market value of quoted investment of Rs 748.09 crore (GMR Infrastructure) in FY14 was Rs 5,978 crore, compared with Rs 5,910 crore in FY13.
