Hyderabad: With a keen eye on a US$ 100 billion investment opportunity in India, GMR Infrastructure Ltd has said it has formed a sub-committee of its board to consider the possibility of a spin-off of its airport business. The company said in a stock exchange filing that it has already received multiple proposals from the investors for the airport business, with the newly-constituted sub-committee to evaluate the proposals. "We wish to inform that the board of directors of the company at its meeting held on February 14 approved the constitution of the sub-committee to consider and evaluate options of demerger to unlock shareholder value in the existing business of the group," the filing said.
Going by the stated intent of the government for faster airport privatisation in India – a US$ 100 billion investment opportunity – the evaluation of the option to demerge would result in the next phase of growth, it said. Besides, the demerger would raise equity capital in the airport business and accelerate the de-leveraging of the company, the filing said.
"We wish to inform that the board of directors of the company at its meeting held on February 14 approved the constitution of the sub-committee to consider and evaluate options of demerger to unlock shareholder value in the existing business of the group,"
The company's airport business generated Rs 1,358.38 crore as revenue during the third quarter while power segment revenue attained was Rs 145.74 crore, down from Rs 430.54 crore in the same quarter of the last financial year. GMR Infrastructure, which was also the successful bidder for the Nagpur Airport, operates international airports in Delhi and Hyderabad in the country and was in the process of constructing one in Goa.
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