GMR Infrastructure Ltd, the infrastructure and power subsidiary of diversified GMR Group, has received board approval to raise Rs 5,000 crore in equity, it informed the Bombay Stock Exchange.
The development comes two months after Singapore investment fund Temasek Holdings invested $200 million (about Rs 936 crore) in GMR Infra. Prior to that, the company raised another $315 million (about Rs 1,475 crore) from share sale to institutions.
The proposed fund will be raised though multiple routes including global depository receipts (GDRs), American depository receipts (ADRs), foreign currency convertible bonds (FCCBs), qualified institutional placement (QIP), and other such options. The shares of the company were traded at Rs 55.05, down by Rs 1.95 or 3.42% at 1:10 pm in the BSE. At the prevailing prices, the company has a market capitalization of Rs 20,170 crore.
The Hyderabad-based company is engaged in the generation of power, development of expressways, airport infrastructure facilities and special economic zones. The company is very keen on fund raising activity for quite sometime now to focus on core businesses which include infrastructure and energy. As part of the plan, the company recently sold a majority stake in sugar biz to E.I.D Parry in a deal worth about Rs 110-120 crore.
According to an earlier Reuters report, the company was also in talks with private equity players to raise $100 million (about Rs 450 crore) for its unlisted power business, GMR Energy.