GMR Infra in the limelight

GMR Infra, after a long time has figured out in the top five gainers list on the BSE. The stock is currently up 2% at Rs.24.30 and volumes over the past two sessions have been robust.

The stock is up on reports that it is selling its entire 40% stake in Istanbul’s Sabiha Gökçen International Airport for Euro 225 million or around Rs.1900 crore to Malaysia Airport Holdings Berhad (MAHB), which already owns a 20% stake in the Turkey project. MAHB exercised its right of first refusal (ROFR) to acquire the stake in the company.  The stake sale deal will be completed over the next 3-4 months.

GMR, till date has invested Rs.594 crore in the project and this stake sale means it has realized some good gains. This stake sale is also a part of the company’s strategy to sell assets to reduce debt. Rs.1500 crore from this stake sale is to be used to bring down debt. Its consolidated debt currently stands at a gargantuan Rs.45,000 crore.

This is the fifth stake sale this year  - it realized Rs.222 crore from sale in Ulundurpet Expressways, Rs.1600 crore from sale in gas-fired power project in Singapore, another Rs.195 crore from stake sale in GMR Jadcherla Expressway and  another over Rs.300 crore from sale in South African coal-mines.