GMR Infrastructure Ltd. said it has constituted a sub-committee of its board for a possible spin-off of the airport business as it sees a $100-billion investment opportunity in India.
The company already received multiple proposals from investors for the airport business, which are being evaluated and shall be placed at the meeting of the newly constituted sub-committee, according to an exchange filing.
“We wish to inform that the board of directors of the company at its meeting held on Feb. 14 approved the constitution of the sub-committee to consider and evaluate options of a demerger to unlock shareholder value in the existing business of the group,” the filing said.
The consideration and evaluation of option of a demerger would pave way for the next phase of growth considering the stated intent of the government for faster privatisation of airports in the country, which is a $100-billion investment opportunity, it said. Besides, the demerger would raise equity capital in the airport business and accelerate the deleveraging of company, the filing said.
GMR Infrastructure, in a media statement, said its airport business generated Rs 1,358.38 crore as revenue during the third quarter, while the power segment revenue stood at Rs 145.74 crore, down from Rs 430.54 crore a year ago.
The company also emerged as the successful bidder for Nagpur Airport, the release said. GMR runs international airports in Delhi and Hyderabad and was in the process of constructing one in Goa.
The group, along with Megawide Constructions, runs an international airport in the Philippines. The Delhi airport made a profit of Rs 156 crore during the October-December quarter, while the Hyderabad aerodrome earned Rs 216 crore. Profits from the Cebu Airport in the Philippines stood at Rs 43 crore in the December quarter.
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