Hyderabad-based GVK Power & Infrastructure Ltd said it is in preliminary talks with investors to sell stake in two businesses to reduce debt, according to a stock market disclosure.
The firm said it is looking at raising equity at the airport holding company, to retire the debt raised for the airport acquisition and is in discussion with a few investors for the same.
GVK’s airport holding company GVK Airport Holdings is part owner and operator of two airports in the country—Mumbai and Bangalore airports. It had previously acquired stake held by some other partners in the separate projects and had taken debt to hike its holdings.
Separately, the airport holding company also has two under-construction airports in Indonesia.
It added that it is also exploring a possibility to bring in equity investor(s) into Hancock Infrastructure Pvt Ltd, which is a holding company, for the rail and port projects in Australia. GVK Hancock is developing the Alpha and Kevin’s Corner projects in the Galilee Basin in Australia’s Queensland state.
For the year ended March 31, 2014, the firm clocked revenues of Rs 2,821 crore with net loss of Rs 369 crore. The company is loaded with debt and had paid around Rs 905 crore as interest on the debt last year.
Shares of GVK Power & Infrastructure were trading at Rs 18.70 per share, up 1.63 per cent on BSE in a strong Mumbai market at 1.47 PM on Friday.
(Edited by Joby Puthuparampil Johnson)