PE-backed GMR Infrastructure Limited is looking to raise around Rs 2,500 crore (approximately $409 million) through issue of non-convertible debentures, equity shares/equity linked instruments or any other securities, according to a stock market disclosure.
The infrastructure major has obtained board’s approval for the proposed fundraising, which is now subject to the approval of the shareholders. The company, however, did not specify the time frame within which it plans to raise the money or the purpose of the proposed issue.
This would come as back-to-back fundraising for the infrastructure firm. Just last month, 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).
The company had said it will use the money it raised via QIP and preferential allotment to strengthen its financial position and repay debt as well as for capital expenditure, working capital and general corporate purposes and meeting exigencies.
GMR Infrastructure has a huge debt pile and the firm 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 Thursday, shares of GMR Infra were trading at Rs 25.05 per share at 11 AM (IST), up 0.60 per cent from their previous close on the Bombay Stock Exchange.
(Edited by Joby Puthuparampil Johnson)