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GMR Infra hits 10-year high as firm demerges Power and Urban Infra unit from airport business

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GMR Infra shares have surged 75 percent so far in 2021, as it gears up for restructuring. The stock hit a 10-year peak on Monday.

2021 has been a great year for GMR Infrastructure, which gears up for restructuring. The stock hit a 10-year peak on Monday, having outperformed the Nifty 500 with a gain of 75 percent so far this year.
GMR Infra restructuring
The company has decided to split its business into two parts: airports and non-airports.
Split into two
AirportsNon-airports
Business 1Business 2
Here are some highlights:
  • To have simplified holding structure
  • Both businesses to be listed
  • Move to unlock value and pave way for more focus on growth
  • To facilitate better understanding of airports business
  • How will the restructuring take place?
    • Step 1: To amalgamate GMR Power and Infra with itself. GPIL is a wholly-owned subsidiary of GMR Infra
    • Step 2: Vertical split demerger of non-airports business into GMR Power and Urban Infra
    • The GMR Power and Urban Infra unit will hold the non-airports businesses including energy, EPC and urban infra categories.
      GMR Infra will hold the airports business. One share of GMR Power and Urban Infra will be given for 10 shares of GMR Infra.
      • To create mirror shareholding pattern of GMR Infra in GMR Power & Urban Infra
      • GIL shareholders will hold shares in GPUIL in the same proportion
      • Revenue split
        ConsolidatedH1FY22FY21
        Airports48%53%
        Power, roads, EPC52%47%
        Scheme of arrangement
        Board nodSebi nodNCLT nod
        August 20December 20December 21
        Q4FY22
        Estimated fixing record date and listing of GMR Power & Urban Infra