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GMR Infra List Airport Separately; Demerging Energy and Transport

GMR Infra

GMR Infra (1) is restructuring its multiple business verticals. The firm is planning a spin-off and to separately list its airport business. On Tuesday, the company announced that its board of directors had approved the demerger and vertical split.

The airport portfolio of the GMR group consists of approximately 172 million passenger capacity. Some of these are in operation or under development. It also includes India’s busiest airport, including Indira Gandhi International Airport in New Delhi, Mactan Cebu International Airport, in partnership with Megawide in the Philippines, Hyderabad’s Rajiv Gandhi International Airport, among others.

The company also has greenfield projects which are currently under development. It includes airport at Mopa in Goa, an airport at Heraklion, Greece, with GEK Terna as partners.

The Proposed Scheme of Arrangements of GMR Infra

As per the proposed scheme, GIL businesses that are non-airport, such as energy, EPC services, and urban infrastructure. These verticals will be moved to Urban Infra Ltd (GPUIL) and GMR Power. At the same time, GIL will transform into a pure airport-owing company.

Thus, the move will create a mirror shareholding of GIL and GPUIL. It means that all the existing GIL shareholders will become a shareholder of GPUIL with the same proportion. The scheme also envisions to issue one additional share of 5 INR to shareholders. It would be provided to the GPUIL for every ten stocks in GIL (1 INR each) as on the record date.

GMR Infra said that its business segments have individual models and operations, capital requirements, risks, returns, etc. Further adding to the restructuring rationale, the firm said that as the business matures and expand, it is a strategic move to segregate them.

Notably, the scheme of GMR Infra is subject to the approvals from the stock exchange, National Company Law Tribunal, Securities and Exchange Board of India, creditors, shareholders, etc.