Infrastructure development company, GMR Infrastructure aims to raise a little over R1,400 crore through a rights issue. The Bangalore-based company will offer three shares for every 14 shares held by investors, and has set March 12 as record date, the company said in a stock exchange announcements.
The funds raised from the issue would be utilised towards repayment of certain borrowings availed by GMR Infrastructure, investment in its subsidiary — GMR Energy — as well as for general corporate purposes, the company said in the draft offer letter.
The issue price is fixed at R15 per share, a 20%-discount to Saturday’s closing price. GMR shares declined as much as 5.6% to R17.70 on Monday. In contrast, the Nifty closed 0.62% higher at new high of 8,956.75.
JM Financial Institutional Securities, Axis Capital, ICICI Securities and SBI Capital Markets are the lead managers to the issue.
GMR, in September, had sought capital markets regulator’s approval to raise money through a rights issue. In a rights issue, shares are issued to existing investors as per their holding at a pre-determined price and ratio.
The company has been fund-raising spree to reduce its debt-burden. In April 2014, the company raised R1,740 crore by selling stake in Istanbul Airport.
According to latest numbers available on Bloomberg, GMR Infra’s consolidated net debt stood at R35,576 crore as on quarter ending September 2014, as against R42,492 crore for three months ending March 2014. In an analyst conference call, the company had reported consolidated net debt at R37,600 crore as on quarter ending June 2014.