GMR may shed 2% for Rs 150 cr

Private equity and global hedge funds in race for picking up stake in the company.

GMR Infrastructure, the Bangalore-based infrastructure and power company, is catching the fancy of private equity and global hedge funds.

A slew of funds, Citigroup, Standard Chartered, Ochziff, Temasek Holdings and Blackstone are looking to pick up minority stake in the company.

"GMR Infrastructure is in the process of finalising the deals. The company is likely to dilute over 2 per cent stake worth Rs 150 crore in next few days," investment banking sources said. However, GMR executives were not available for comments.

GMR was recently awarded a long-term agreement to operate, manage and develop the Delhi Airport following a competitive bidding process. The value of the Delhi project is estimated over Rs 4,000 crore.

The company also holds 63 per cent in GMR Hyderabad International Airport Ltd (GHIAL), which is developing the Hyderabad Airport pursuant to a 30-year concession granted by the government.

The company has filed the draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for its forthcoming public issue for raising over Rs 1,000 crore.

"The company will raise over Rs 400 crore to Rs 500 crore via private equity placements," said sources. Investment houses have valued the company at over Rs 7,500 crore.

"Recently, private equity firm ICICI Venture has picked up 3.5 per cent stake in the company for Rs 250 crore," sources said.

Another private equity fund,India Development Fund managed by IDFC Private Equity, had also picked up 4.25 per cent stake in GMR Infrastructure, through a swap deal. IDF has swapped its 15 per cent stake in GMR Energy for 4.25 per cent stake in GMR Infrastructure, according to investment banking sources.