NEW DELHI: The GMR Group, which operates the Delhi and Hyderabad airports, has hived off its airport business from the holding company GMR Infra Ltd (GIL). Following this restructuring, GIL will be India’s first pure play listed airports company. The other company hived off from erstwhile GIL will be GMR Power and Urban Infra Ltd (GPUIL) that will look after these group businesses.
GIL managing director & CEO Grandhi Kiran Kumar said: “Over the years, GIL has grown multi-fold and with various divergent businesses housed under one holding structure. Shareholders have been suggesting us to offer pure plays listed vehicles to ride the growth trajectory of matured & scaled-up infrastructure businesses. We have been closely evaluating various options and as a step in that direction, post the separation of non-airport business, GIL will be ‘India’s only pure play listed airports company’ and continue its growth journey.”
Greenfield projects under development include Mopa Airport in Goa and an airport at Heraklion, Greece. The group has won its second JV airport project in Philippines. It will develop a greenfield airport at Bhogapuram in Andhra Pradesh. The Group will operationalise and maintain the civilian enclave at Bidar Airport in Karnataka.
Given its presence in airport segment, the board of GIL together with other group companies — GMR Power Infra Limited (GPIL) and GMR Power and Urban Infra Limited (GPUIL) — on Thursday announced a vertical split demerger of the non-airport business (energy, EPC, urban infrastructure) of GIL into GPUIL, as a going concern, along-side amalgamation of GPIL with GIL, as a step preceding demerger.
“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,” it said in a statement.
“Scheme to create mirror shareholding of GIL in GPUIL with all existing shareholders of GIL becoming shareholder of GPUIL in the same proportion. Scheme envisages issue of 1 additional share of Rs 5 each of GPUIL for every 10 shares in GIL of Rs 1 each as on the record date… The appointed date for the Scheme, being the date on which the undertakings shall vest in the respective resulting companies, has been fixed at April 1, 2021,” the group statement added.
Grandhi Kiran Kumar said: “We are equally excited that our non-airport bBusinesses in GPUIL, with our deep understanding and pre-qualifications backed by superior execution track record is well positioned to create value for all stakeholders. We at GMR Group are committed and will continue to evaluate various strategic options to unlock shareholder value.”