GMR Infrastructure Limited (GIL) today announced a strategic restructuring of Group companies, which involves vertical split demerger of the non-airport businesses (energy, EPC, urban infrastructure, etc.) of GIL into GMR Power and Urban Infra Limited (GPUIL).
The Group will also amalgamate GMR Power Infra (GPIL) with GIL, as a step preceding demerger.
“The restructuring is a step in the right direction towards creating pure plays in different businesses of the Group,” GMR Group said in a statement.
According to the company, the restructuring will help attract sector-specific global investors, unlock value for the shareholders of GIL and will also pave the way for focused growth and sustained value creation for all stakeholders over a period of time.
Separate listing of 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 company said.
Grandhi Kiran Kumar, Managing Director & CEO of GMR Infra, 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.”
“We are equally excited that our Non-Airport Businesses in GPUIL, with our deep understanding & 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.”
The scheme is subject to the approvals from the stock exchanges, SEBI, NCLT, shareholders and creditors.
First Published: IST