GMR Infra takes flight

GMR Infra is a big newsmaker of today morning. Its airport company – GMR Airport, which has been looking out for a buyer, seems to be close to zeroing in on one pretty soon. Unconfirmed news is that the company is talks with PE funds like Canada’s Fairfax and KKR &Co, to sell 30% stake. The news is that talks have just begun and if all goes through well, they might be able to close the deal by March.

GMR Airport is looking at selling stake at an enterprise value of $1.5 billion or Rs.10,000 crore. Credit Suisse Group AG is advising GMR Group in its fundraising process.  This is the best performing company of GMR Infra and almost 50% of its revenue comes from this airport holding company.

GMR Airports operates India’s busiest airport, Indira Gandhi International Airport in Delhi, and Rajiv Gandhi International Airport in Hyderabad. The group has taken over the Mactan-Cebu International Airport project in the Philippines for renovation, operation and maintenance with a concession period of 25 years.

GMR Infra, not surprisingly, is amongst the top gainers on the bourses currently. The stock which had breached the lower circuit on Friday at Rs.15.40, is presently at Rs.16, up over 2.5%, with an intra day high of Rs.16.25. Its 52-week high and low stands at Rs.20.27 and Rs.9.58 respectively.