With stake sales bringing down its corporate debt, GMR is now a play on the resumption of air travel
The sale transaction shall be subject to receipt of regulatory and other statutory approvals.
The stock got traction after reports emerged that the company is going through a restructuring exercise that will result in it retaining just the airport business.
In February 2019, GMR Airports had emerged as the highest bidder for the project on a public-private partnership basis.
In a filing to stock exchanges on Wednesday, GMR Infrastructure said the group has received Rs 5,248 crore towards first tranche of payment from Groupe ADP.
Shares of the company got traction after the Competition Commission of India gave approval for the GMR group's proposed 49 percent stake sale in its airport business to France's Groupe ADP.
The concession period for the project is 35 years including Phase 1 construction of 5 years.
It is expected to start the airport operations in the first week of February 2020 with the operations of one daily flight connecting Bidar with Bangalore.
In a regulatory filing, GMR Infrastructure said it has decided to "increase the transaction size by agreeing to divest 49 percent in GMR Airports Limited (vs previously agreed 44.44 per cent) to TRIL Urban Transport Private Limited (part of TATA Group), an affiliate of GIC and SSG Capital Management... in one or more tranches".
The company has decided to increase the transaction size by agreeing to divest 49 percent in GMR Airports.
"The funds...have been raised by one of the step down subsidiary of the company, GMR Infra Services Limited (GISL). GISL has raised funds of Rs 2,000 crore through issuance of non-convertible debentures (NCDs), in the normal course of its business, primarily to retire some of its existing debt," GMR Infrastructure said in a filing to the NSE.
Trends on SGX Nifty indicate a negative opening for the broader index in India, with a 40 points loss or 0.33 percent. The Nifty futures were trading around 12,011-level on the Singaporean Exchange.
This sale will bring down GMR Group's debt pile which stood at Rs 21,000 crore as of March 2019, of which GMR Chhattisgarh Energy had an outstanding debt of Rs 5,926 crore.
GMR Infrastructure Ltd (GIL) consolidated total income stood at Rs 2,293.63 crore during the quarter, against Rs 2,234.88 crore in the same quarter in 2017-18, it said.
The company reported Rs 4.81 crore profit after tax during the same quarter in FY18. Consolidated total income stood at Rs 2293.63 crore during the quarter under discussion against Rs 2234.88 crore in the same quarter in FY18, it said.
Following the transaction, GMR Infrastructure and its subsidiaries will hold around 54 percent stake in GMR Airport, while employee welfare trust will hold about 2 percent, Tata Group around 20 percent, GIC about 15 percent and SSG around 10 percent.
"GHIAL...has divested its 100 per cent stake in its subsidiary namely Asia Pacific Flight Training Academy Ltd (APFTAL) to a third party, for a token consideration," GMR Infrastructure said in a regulatory filing.
According to a regulatory notice filed on Thursday night, the infra major said the total income during the quarter under discussion stood at Rs 2,119.87 crore down from Rs 2,276 crore in Q3FY18.
Total income during the second quarter of this fiscal stood at Rs 2,025.72 crore, up 2.61 per cent as against Rs 1,980.92 crore in the year-ago period, GMR Infrastructure said in a BSE filing Thursday.
"Kakinada SEZ, a subsidiary of GMR Infra, signed an MoU with APGDC to get access to piped domestic natural gas for its upcoming 10,500-acre zone," the company said in a filing to BSE.