GMR Airport Shares Soar 6% After Arm Raises NCD Funding

GMR Airports board to consider fundraising on March 17, 2023.

GMR Airports Infrastructure’s shares rose by 4.82% from the previous close to Rs 41.35 after announcing that its board will discuss raising funds through appropriate instruments in a meeting on Friday.

The stock hit a 52-week high of Rs 44.30 on December 14, 2022, and a low of Rs 31.75 on May 12, 2022. At 12:42 pm, shares were up by 5% at Rs 41.55, with a five-fold increase in trading volumes. A total of 25.93 million equity shares were traded on the NSE and BSE.

In Q3FY23, GMR Airports Infra recorded a net profit of Rs 191.4 crore, a significant improvement from a net loss of Rs 626.3 crore in the same quarter the previous year. The revenue from operations for the company surged by 29.49% to Rs 1,766.36 crore in Q3 FY23 compared to Q3 FY22. However, the company’s EBITDA margin decreased to 30%, and its operating profit declined by 26%.

On March 13, 2023, GMR Hyderabad International Airport Limited (GHIAL), a GMR Airports Limited subsidiary, successfully raised Rs 840 crores through a private placement by issuing 10-year Redeemable, Secured Non-Convertible Debentures (NCDs).

The funds from the NCDs will be utilised for paying accrued interest and other tender offer/issue expenses, as well as for partial refinancing of about $100 million of existing Foreign Currency Bonds of 2024.

GMR Airports Infrastructure is mainly engaged in developing, maintaining and operating airports, power generation, coal mining and exploration activities, development of highways, and operation of special economic zones. With a passenger handling capacity of over 189 million per year, GMR Airports is Asia’s largest private airport operator and the second largest in the world.

The company is focused on creating a more sustainable world by using solar, wind, and water power for energy generation, strongly emphasising green energy. GMR is developing sustainable energy projects totalling over 1,000 MW in India and Nepal.

The GMR Airports Infrastructure Ltd board will meet on Friday (March 17) to consider a proposal for raising funds as part of the approval received to raise Rs 6,000 crore in various tranches. The proposed fundraising exercise will likely be done by issuing equity shares to qualified institutional players or foreign currency convertible bonds (FCCB).

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