GMR Infrastructure Ltd, infrastructure and power subsidiary of the diversified GMR Group, on Tuesday announced that the board of the company has given nod to raise Rs 5,000 crore in equity.
The development comes two months after Singapore investment fund Temasek Holdings invested $200 million (about Rs 936 crore) in GMR Infra. Prior to that, the company raised another $315 million (about Rs 1,400 crore) from share sale to institutions.
GMR Infra, in its statement to the Bombay Stock Exchange (BSE), informed that the proposed fund will be raised though multiple routes, including global depository receipts (GDRs), American depository receipts (ADRs), foreign currency convertible bonds (FCCBs), qualified institutional placement (QIP), and other such options. At the prevailing prices, the company has a market capitalisation of Rs 20,170 crore.
GMR Infra shares on Tuesday, however, slipped by 4.74% to close at Rs 54.30 on the BSE.
The Hyderabad-based company is engaged in generation of power, development of expressways, airport infrastructure facilities and special economic zones. According to experts, the company is very keen on fund raising activity for quite sometime now to focus on core businesses which include infrastructure and energy. As part of this strategy, the company had recently sold a majority stake (about 65%) in its sugar business to EID Parry in a deal worth about Rs 110-120 crore.
The company on Tuesday appointed Srinivas Bommidala as managing director with effect from May 24, 2010. GBS Raju has resigned as the MD of the company with effect from May 12, but would continue as director on the company board, it said.
Q4 net profit surges 37%
GMR Infrastructure registered a growth of 37.21% in its consolidated net profit during Q4 ended March 31, 2010, to Rs 73.05 crore as against Rs 53.24 crore. Net sales during the quarter under review stood at Rs 1,124.96 crore, down by 15.27%, compared to Rs 1327.79 crore in Q4 FY 2009.
For the full-year ended March 31, 2010, the company’s net profit dipped 43.32% to Rs 158.40 crore compared to Rs 279.45 crore last year. Net sales grew 13.62% to Rs 4,566.51 crore from Rs 4,019.22 crore in FY 2009.
Net profit has declined, primarily impacted by the absence of revenues from the decommissioned 235 mw barge mounted power plant during the year, the company said.
“The year gone by has been satisfying on all fronts as we created a robust platform for sustainable long-term growth for our company. With three airports, 13 power plants, nine highways, and 22 locations of our CSR activities, we have positioned ourselves as a responsible corporate citizen and as a strong infrastructure developer,” said GMR group chairman GM Rao. On a standalone basis, the firm posted a net loss of Rs 3.13 crore for the quarter ended March 31, 2010 against net profit of Rs 9.32 crore in the same quarter previous year. Total income rose from Rs 28.86 crore to Rs 65.74 crore in Q4 FY 2009.
