GMR is looking at debt reduction by selling 30 percent stake of its airport arm
Mayuresh Deshmukh / 07 Dec 2015
The GMR Group is looking to sell its 30 percent stake in its airport business GMR Airport Ltd. which runs India's busiest airports.
The GMR Group is looking to sell its 30 percent stake in its airport business GMR Airport Ltd. which runs India's busiest airports. According to media reports it is in discussion with private equity firms KKR & co. and Canada's Fairfax Financial Holdings Ltd for stake sale.
The company is looking at reducing the debt of the company through a sale of stakes. The debt of the company for year ending March 2015 stands at Rs.42201.56 crores an increase of 7.70 percent from the previous year. It is 63.23 percent of total assets of the company. According to the media report the company is looking to raise USD 500-700 (Approx. Rs.3200 crores) through this deal.GMR Airports, a subsidiary of Bengaluru-based GMR Infrastructure Ltd, accounts for nearly half of the parent’s revenue and is the group’s best-performing business—making it easier for the debt-laden parent to raise funds.
In terms of financials the total consolidated operating revenue of GMR Infra on year ending March 2015 stands at Rs.11087.68 crores an increase of 4 percent on yearly basis. The EBITDA of the company stands at Rs.2554.64 crores a decrease of 0.40 percent and EBITDA margin is 23.08 percent as compared to 24 percent for same period last year.The company faced a net loss of Rs.2967.40 crores in FY 2015.
The debt reduction can help the company in improving its financials. Today, the stock of the company is trading at Rs.15.95 an increase of 3.24 percent from the previous close.
GMR Infrastructure Limited (GIL) is an India-based company engaged in the generation of power; mining and exploration activities; development of highways; infrastructure development, including development and maintenance of airports and special economic zones, and construction business, including engineering, procurement and construction (EPC) contracting activities, and operation of airports and special economic zones. The Company operates through other segments, including Airports, Power, Roads, EPC and Others.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.