GMR Airports Seeks To Raise Rs 5,000 Crore Funding

GMR Airports Infrastructure Ltd. proposed to its shareholders raising up to Rs 5,000 crore, according to an exchange filing. The airports developer will raise the funds through qualified institutions placement, foreign currency convertible bonds, or other securities.

The funds are expected to be raised in one or more tranches, subject to shareholders' and regulatory approvals, said the filing on Tuesday. The proposal to raise funds was approved by the company's board in a meeting to declare its quarterly results for the three months to June.

For the first quarter of this fiscal, GMR Airports reported a loss of Rs 337.6 crore on a yearly basis, as compared with a profit of Rs 16.8 crore in the same quarter of the previous fiscal. The company's revenue grew by 19.1% year-on-year to Rs 2,402 crore.

Profitability improved as operating profit rose 19.2% to Rs 896 crore, against Rs 752 crore in the year-ago period. Operating margin improved by 10 basis points to 37.3%.

Shares of the company closed 3.49% lower on Tuesday at Rs 94.60 apiece, as compared to a 0.85% decline in the benchmark NSE Nifty 50.