GMR Infrastructure, the flagship company of GMR group, has interests in airports, power, roads and EPC businesses.
Madhu Terdal, group CFO of GMR Infra, told a private news channel that the timing of the IPO would depend on market mood. He said the company has filed the prospectus as a preparatory step and that the Sebi approvals would take 2-3 months.
GMR Energy plans a total IPO size of around R1,700 crore of which R1,450 crore would be fresh equity raising and R250 crore would be in the form of offer for sale by existing private equity investors.
The company, primarily into power generation, plans to utilise half (or approximately R700 crore) of the net proceeds to fund the equity contribution for its 1,050 MW (Phase I) Kamalanga Power Plant and 1,370 MW Chhattisgarh Power Project.
GMR Energy has an outstanding loan agreements debt of R2,130.40 crore (as on March 18) plans to utilise R450 crore towards part debt repayment. GMR Energy on a consolidated basis had a total gross debt of R23,432 crore as at end of September 2013.
The listing is also likely to provide an exit opportunity to private equity investors like Temasek (through wholly owned subsidiary Claymore Investments), IDFC Alternatives and Ascent Capital who had invested nearly R1,395 crore in the company through compulsorily convertible preference shares (CCPS) in 2010.
These PE investors have recently in February 2014 agreed to restructure their investments in GMR Energy by subscribing to R1,136.60 crore worth of CCPS in GMR Infrastructure which are likely to be converted into ordinary equity shares one and half years later. With this IPO, the PE investors can exit their remaining investment worth R254 crore in GMR Energy.
The company currently has gross operational capacity of 2,498 MW and an additional gross capacity of 2,318 MW under construction. In addition, it has a pipeline of power projects with an aggregate gross capacity of 3,695 MW that are currently under various stages of development. Out of the 2,318 MW under construction, company expects two units of 685 MW capacity each to commence operations by the end of fiscal year 2015.
The shares of GMR Infrastructure closed the day at R21.95 with gains of 1.39%, after surging by as much as 5.8% on Monday morning.