GMR rejigs, to become pureplay airports co

GMR Infrastructure Ltd on Thursday unveiled a strategic group restructuring involving demerger of non-airport vertical business as part of efforts to simplify the corporate holding structure.

Along with the rejig, the board of GMR Infrastructure Ltd (GIL) on Thursday also approved raising up to Rs 5,000 crore through issuance of securities.

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 said in a statement.

The board of GIL together with other group companies -- GMR Power Infra Limited (GPIL) and GPUIL -- have decided on a "composite scheme of arrangement involving vertical split demerger of the non-airport business (energy, EPC, urban infrastructure, etc) of GIL into GPUIL, as a going concern".

Along with the rejig, GPIL would be amalgamated with GMR Infrastructure Ltd (GIL) as a step preceding demerger, the statement said. "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 deeper understanding of the airport business independently as compared to other business verticals within the group," the statement said.

GMR Infrastructure’s consolidated net loss for the quarter ended June 30 more than doubled to nearly Rs 834 crore against Rs 336 crore loss in the January-March period in FY20.