Stock Exchanges on Monday pulled up GMR Infrastructure over reports that it plans to raise funds by selling part of its assets in airports and energy business, even as the company denied the reports.
“We are not aware of any information that is not announced to the Exchange, which could explain the movement in the price of share of our company,” GMR Infrastructure said in filings to the exchanges in response to media reports.
Earlier, the exchanges sought clarification from GMR Infrastructure Ltd with reference to news reports that the Group plans to raise at least USD 1 billion over the next two years to cut debt, repay investors in its airports business and prepare for a new phase of growth.
When contacted, company CFO Madhu Terdal told PTI, “reports regarding raising of USD 1 billion are completely wrong and complelety incorrect.”
He said, “GMR has no concrete plans as of now and we are wanting to strengthen our balancesheet and get healthy only.”
“Our debt quality has improved. We have a debt of Rs 6,500 crore and last week only we raised about Rs 2,000 crore” from Kuwait Investment Authority through a 60-year foreign currency convertible bond and the money will be used to repay certain outstanding obligations of the company.
He said the media has misinterpreted the company and “we had categorically said that we are in no hurry to raise funds and there are no definite plans.”
He said the company may look to raise some funds in the long future like about USD 400 million in energy and some funds in the airport but nothing is definitive.
Last week, engineering firm GMR Infrastructure had said that it has raised USD 300 million (around Rs 2,000 crore) from Kuwait Investment Authority through a 60-year foreign currency convertible bond and the money will be used to repay certain outstanding obligations of the company.
Kuwait Investment Authority had agreed to subscribe to a 60-year-long foreign currency convertible bonds (FCCB) due 2075.
Shares of the company closed at Rs 16.20 apiece on BSE, up 4.85 per cent from previous close.