GMR Infrastructure Ltd has received board approval to raise up to Rs 2,500 crore ($398.35 million) through various instruments, including foreign currency convertible bonds (FCCBs), as per a stock market disclosure.
In 2010, GMR Infrastructure raised $350 million through qualified institutional placement (QIP) and this is the first time it may using FCCB route to raise funds.
GMR Infrastructure, a subsidiary of GMR Holdings Pvt Ltd, has a huge debt pile of Rs 40,000 crore and the firm is bringing it down by way of divestments of its assets. Recently it announced a deal to sell its entire stake in Istanbul’s Sabiha Gokcen International Airport for $308 million.
The decision to sell its stake in the airport is part of GMR’s efforts to raise money to pare its debt and comes at a time when the firm has reportedly hired four banks to manage the listing of its airport business that is expected to raise $300-350 million.
It is also considering stake divestment in two road assets and in a hospitality project managed by the Accor Group at the Rajiv Gandhi International Airport in Hyderabad.
GMR Infrastructure operates airports in New Delhi, southern Indian city of Hyderabad and Istanbul in Turkey in partnership with other companies.
GMR Infrastructure's scrip was trading at Rs 21.70, down over 5 per cent in mid-day trades on BSE on Monday in a weak Mumbai market.
(Edited by Joby Puthuparampil Johnson)