The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Another GMR Deal: GMR gets $200m each from 3i and Macquarie

GMR has emerged as a leader in aviation infrastructure space wiht commissioned projects in Hyderabad, Delhi and Turkey. Despite the recent L&T stake sale to GVK in Bangalore ( that probably GMR should also have bid) and with the opening of more than 20 mid tier airport projects plus another 5-6 metro airport modernisation projects, GMR cannot be choosy but also cannot afford to ive away the farm. Each Aviation project Capital requirement will run into 2-3K Crores that’s a $500m each time. Even if it foots only 10-15% of its equity, it crrently cannot affor to take any of its earler projects public and the infrastructure spending requirement is NOW.

After the Temasek deal for 10% of GMR Energy was announced yesterday, GMR has pulled a virtual second and third consecutive cheer, with the SBI Macquarie infra fund picking up $200m stake in the Aviation Infrastructure bids. 3i which earlier in the week announced its deal for toll highways has also flown in to GMR Airports with a $200m tab

From ET: GMR want(ed) to sell a minority stake in the airport subsidiary to raise cash for investments in infrastructure and power. The airports business, which includes the Hyderabad and Delhi airports, account for 45% of the group’s revenues.

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