: GMR Infrastructure Ltd has said it has constituted a sub-committee of its board for a possible spin-off of the airport business as it sees a USD 100-billion investment opportunity in India.
According to a regulatory filing with bourses Thursday, the company has already received multiple proposals from the investors for the airport business, which are currently being evaluated and shall be placed at the meeting of the newly constituted sub-committee.
"We wish to inform that the board of directors of the company at its meeting held on February 14 approved the constitution of the sub-committee to consider and evaluate options of demerger to unlock shareholder value in the existing business of the group," the filing said.
The consideration and evaluation of option of demerger would pave way for the next phase of growth considering the stated intent of the government for faster privatisation of airports in the country, which is a USD 100-billion investment opportunity, it said.
Besides, the demerger would raise equity capital in the airport business and accelerate the de-leveraging of company, the filing said.
Also Read
In a press release, the GMR Infrastructure said its airport business generated Rs 1,358.38 crore as revenue during the third quarter while power segment revenue stood at Rs 145.74 crore down from Rs 430.54 crore in the third quarter of the financial year 2018.
The company also emerged as successful bidder for Nagpur Airport, the release said.
GMR currently runs international airports in Delhi and Hyderabad in the country and was in the process of constructing one in Goa.
The group, along with Megawide Constructions, runs an international airport in the Philippines.
Delhi airport made a profit of Rs 156 crore during the October-December quarter while Hyderabad aerodrome earned Rs 216 crore as profit.
Profits from the Cebu Airport in the Philippines stood at Rs 43 crore in the December quarter.
Disclaimer: No Business Standard Journalist was involved in creation of this content
