GMR Infra surges 9% as its airport biz gets investment proposal of Rs 8,000 cr

Shares of GMR Infrastructure (GIL) rose 9 percent in the early trade on Wednesday on proposed investment from Tata Group, GIC and SSG Capital worth Rs 8,000 crore.

The company announced a proposed investment by Tata Group, an affiliate of GIC, Singapore’s sovereign wealth fund and SSG Capital Management in its airports business, company said in its press release on BSE.

GIL has signed a binding term sheet with the investors pursuant to which the investors have agreed to invest Rs 8,000 crore in GMR Airports (GAL).

The investment amount of Rs 8,000 crore will consist of Rs 1,000 crore equity infusion in GAL and Rs 7,000 crore towards the purchase of GAL’s equity shares from GIL and its subsidiaries, the company added.

The proposed investment is subject to definitive documentation, customary regulatory approvals, lender consents and other approvals.

Following the investment, GIL proposes to demerge its energy, highways, urban infrastructure and transportation businesses, leading to separation of its airport business, subject to customary consents, regulatory and corporate approvals.

According to the company, the said investment paves the way for restructuring of the business by way of demerger.

At 09:25 hrs GMR Infrastructure was quoting at Rs 19.80, up Rs 0.35, or 1.80 percent on the BSE. The stock has touched an intraday high of Rs 21.25 and an intraday low of Rs 19.45.

[“source=moneycontrol”]