GMR Group restructures flagship GIL; non-airports businesses to be carved out

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GMR Infrastructure, the flagship company of the infrastructure major, is going through a restructuring exercise that will result in it retaining just the airport business.

The rest of its verticals - energy, EPC and urban infrastructure - will be carved out under GMR Power and Urban Infra Limited (GPUIL). At present, both GPUIL and GMR Power Infra, that housed the energy business, were units of GIL.

"The restructuring is a step in the right direction towards creating pure plays in different businesses of the Group thereby attracting sector-specific global investors and unlocking value for the current shareholders of GIL," the company, which runs airports in Delhi and Hyderabad, said on August 27.

After the scheme, GIL will emerge as the country's only pure-play listed airports company.

Also read: GMR Infra may launch Rs 2,000- Rs 3,000 crore QIP in October

"Separate listing of both the airport and non-airport businesses will also help in simplifying the corporate holding structure. The vertical split demerger will go a long way in facilitating a deeper understanding of the airport business independently as compared to other business verticals within the Group," it added.

• Scheme to create Mirror shareholding of GIL in GPUIL with all existing shareholders of GIL becoming a shareholder of GPUIL in the same proportion. The scheme envisages issue of 1 additional share of Rs.5/- each of GPUIL for every 10 shares in GIL of Re.1/- each as on the record date. 


• All existing shareholders of GIL to continue their same shareholding in GIL. 


• The scheme also envisages amalgamation of GPIL with GIL as a step preceding demerger. 


• The appointed date for the Scheme, being the date on which the undertakings shall vest in the respective resulting companies, has been fixed at April 1, 2021.