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GMR Infra to raise up to $246M via rights issue to shareholders

PE-backed GMR Infrastructure Limited has obtained its board's approval to raise up to Rs 1500 crore (around $246 million) through rights issue to existing shareholders, as part of its efforts to bring down high-cost debt, as per a stock market disclosure. The proposal is subject to necessary approvals.

The company, however, did not divulge further details and the time frame within which it plans to raise the money or the purpose of the proposed issue.

Meanwhile, Reuters reported citing sources that US private equity firm KKR & Co LP has decided to lend about $175 million in financing to GMR Infrastructure in a debt and equity deal.

The infra major is on a fundraising spree as the fresh fundraising proposal came just a month after it announced to raise approximately Rs 2,500 crore (about $409 million) through issue of non-convertible debentures, equity shares/equity linked instrument or any other securities, subject to shareholders’ approval.

In July, GMR Infra raised Rs 1,478 crore through an issue of 4.68 million equity shares to qualified institutional investors. Simultaneously, the promoters of the company subscribed to 18 crore warrants which would be worth around Rs 600 crore ($100 million).

GMR Infrastructure has a huge debt pile and it is bringing it down by way of divestment of its assets besides fresh fundraising.

Early this year, Singapore’s sovereign wealth fund Temasek, IDFC Alternatives among other private investors in GMR Energy swapped bulk of their investment in the firm with a stake in the listed parent GMR Infrastructure.

Meanwhile, the company clocked net revenue of Rs 2,699.3 crore on consolidated basis with a net loss of Rs 593 crore during the quarter ended June 30, 2014.

On Tuesday, shares of GMR Infra were trading at Rs 22.40 per share at 2:20 PM, down 9.86 per cent from their previous close on the Bombay Stock Exchange.

(Edited by Joby Puthuparampil Johnson)

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