Re: {LONGTERMINVESTORS} GMR Infrastructure : thread
RAJESH DESAI
GMR to recoup losses after airport tariff hike:Subba Rao
GMR Infrastructure announced its September quarter results on Friday. While the company posted a 48% increase in its revenues Year-on-Year, it recorded a net loss of Rs 63 crore versus Rs 71 crore net profit.
Explaining what went wrong during the quarter under review, A Subba Rao, chief financial officer at the company told moneycontrol.com, “Our financials were hit by a weak rupee and reduced availability of gas for our Vemagiri power projects. Also, delays in tariff revision for Delhi International Airport which we run recorded a net loss of Rs 227 crore for the quarter.”
However, Subba Rao expects user tariffs for handling passengers and cargo to be revised soon by the airports regulator. This would help the company recoup losses.
“User tariffs have not been revised since 2001, despite a four-fold increase in passenger traffic in the past decade. Furthermore, the Delhi airport has gone through structural changes and grown in size, entailing sizeable capital expenditure,” he says.
GMR runs two airports in India -- at Delhi and Hyderabad -- besides one at Istanbul, in Turkey, and one at Male, in Maldives and also has interests in energy business, highways projects and urban infrastructure.
GMR Infrastructure:
I am starting a thread for each company I am tracking and shall post all updates in the respective threads. All members are requested to also post reports, views and updates in these threads.Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products, acts of God and their pricing, product demand and supply constraints.Nothing in this article/report/thread is, or should be construed by anyone as an investment advice.
report atch.
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CA. Rajesh Desai
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CA. Rajesh Desai
RAJESH DESAI
| GMR Infra slips to new low | |
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GMR Infra hit a new 52-week low today at Rs.19.50 and it currently in the red around the same levels. There are more sellers than buyers on the counter. The stock is being run down after the company stated that it has pledged additional 3.05 crore shares. As at 30th Sept, promoters holding stood at 71.42% of which 28.55% is already pledged. |
CA. Rajesh Desai
RAJESH DESAI
The stock hit the bottom on news that Civil Court of Maldives ruled that GMR will not be allowed to charge an Airport development fees (ADF) at the Maldives airport. The company, beginning 1st Jan 2012, planned to levy an airport development fee of $25 on incoming tourist traffic. GMR is developing the airport at a total cost of $511 million with a debt component of $358 million that was arranged by the Singapore branch of Axis Bank. Repayment on the debt is expected to begin in 2015. ADF is part of the cost recovery on the investments by the joint venture partners.
CA. Rajesh Desai
RAJESH DESAI
The first unit of GMR Rajahmundry Energy's combined cycle power plant at Vemagiri in Andhra Pradesh was synchronized on Sunday night, adding 384 megawatts (MW) capacity to the Andhra Pradesh grid. GMR Infrastructure said that the GMR Group is setting up the 2x384 (MW) combined cycle power plant adjacent to its existing plant located at Vemagiri. The first unit has been commissioned on Sunday, 11 December 2011, in a record time of 24 months. The second unit is expected to be commissioned by February 2012, GMR said in a statement. This GMR project was identified as a XI plan project and accordingly was shortlisted for gas allocation by the Government of India. It is expected that gas will be made available to this project shortly, GMR further added
CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
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Rejecting GMR-led Delhi airport's proposal for a seven-fold increase in airport charges, sector regulator AERA has suggested only a three-fold rise in these tariffs in a recent consultation paper, causing disappointment to the loss-making private developer.
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Karishma Suvarna
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CA. Rajesh Desai
RAJESH DESAI
PTI
GMR Infra issues debentures worth Rs 250 cr to GMR Airports
NEW DELHI: GMR Infrastructure today said it has allotted 2,500 non-
convertible debentures to group firm GMR Airports Holdings for Rs 250
crore.
"The company (GMR Infrastructure) has allotted 2,500 non-marketable,
unsecured, non-convertible debentures of face value of Rs 10 lakh
each, aggregating to Rs 250 crore, to GMR Airports Holding," GMR
Infrastructure said in a filing to the BSE.
The debentures were allotted on January 6, 2012. A debenture is a debt
instrument used by companies to borrow money.
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CA. Rajesh Desai
RAJESH DESAI
Expect Rs 900 Cr loss from Delhi Airport in CY12: GMR Infra.
A newspaper report said GMR Infra will be allowed to collect airport development fee from Maldives Airport. Last month, a local court had banned the company from collecting it.
Speaking to CNBC-TV18, Sidharath Kapur, CFO-Airports at GMR Group says, "New tariff hike has not yet been finalised by the regulators. The company expects requisite approvals to come in by March."
Below is the edited transcript of Kapur's interview with CNBC-TV18's Latha Venkatesh and Reema Tendulkar.
Q1: If you could confirm for us what exactly is the tariff that GMR will be getting for the Delhi airport?
A: At this stage regulator has not approved the tariff; they have put a proposed tariff into consultation. We had asked for a certain tariff increase and they have put an increase of 334% on the existing aeronautical tariffs into a consultation process. This process will run through the next three-four weeks, stakeholders will be invited for discussions and after that the regulator will take a final call on what kind of increases they want to approve.
Q2: How does this compare with what you wanted?
A: We had asked for a 770% increase in tariff. I will list out 2-3 key differences between our demand and actual tariff rates. A 774% increase in tariff looks daunting but if one keeps the background in mind. For the last ten years the aeronautical charges in India were based upon what airport authority was charging and Delhi airport continued to charge at same rates when they took over the airport. These charges have not increased in the last 10 years. If you factor in an inflationary growth the charges should be twice of what the currently prices are right now.
The infrastructure and the operating cost at Delhi airport have changed dramatically. A world class infrastructure worth USD 2.8 billion and commensurate operating cost, the total area of build-up in the T3 terminal is 7 times what it was 3 years back when the infrastructure was taken over.
Keeping all these factors in mind the growth in tariffs was bound to happen. In the current scenario, the revenues are ten years old but the development costs are most recent. So there is a complete mismatch between the revenues and the costs. The tariffs which we are currently demanding have been benchmarked against global airports and suppose to be the lowest in the world. The project cost has been benchmarked by Delhi airport through independent consultants.
Q3: If tariff hike of 334% is approved then what kind of impact do you think it would have on your own revenue stream and in terms of a timeline when do you think this proposal may come through?
A: The revenue approval to come in by March and effective 1st April is what we expect the new tariffs to kick in. In terms of impact on revenues, our current revenues are about Rs 600 crore on aeronautical tariffs so a 334% increase on aeronautical tariffs if proposed will take our aeronautical tariffs to about Rs 2,400 crore plus if you take non-aeronautical tariffs we are looking at about Rs 3,000-3,500 crore as our total revenue for this year.
Q4: At 330% increase in tariffs, when will you breakeven on Delhi airport?
A: For the last two years we have been making losses. Last year, we made loss of 450 crore, this year we expect to make a loss of about 900 crore. So our total networth of Rs 2,400 crore has been wiped off by more than 50% as of today. But with this tariff proposal which has been split into two parts; 148% increase next year and another 148% increase the year after that we would continue to make losses in 2013 and we will breakeven in the year after that.
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
GMR gets aircraft overhaul unit in Hyderabad
· Civil Aviation Minister Ajit Singh today unveiled the GMR group’s maintenance repair and overhaul unit (MRO) at Hyderabad, boosting the aspirations for the city as an aviation hub.
· It would create an alternate revenue stream for the airport developer. For three consecutive quarters, the group’s airport division has made a loss, largely due to Delhi International Airport Ltd. In the past two quarters, the division’s losses have been in excess of Rs 200 crore.
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
The Airports Economic Regulatory Authority (AERA) has rejected GMR Infra 's claim for 24% returns on equity (ROE) from its Delhi airport project, say sources.
GMR spokesperson said that they cannot offer any comments on the story but C.V Deepak (officer on special duty)AERA told moneycontrol.com, "We have already allowed a 16% return on investments to GMR. Post this, that there is no further development." However, GMR had earlier told moneycontrol.com that they have appealed to the regulator for more hike.
On May 16, the company had raised airport charges by 346% as directed by AERA after which it started charging Rs 426 per passenger on domestic routes and Rs 1120 on international routes. Higher parking and landing charges have also upset airline operators.
The AERA official further says that GMR in its argument for raising charges had said that world over, ROE in airport projects is around 25%. "It even gave the example of Athens International Airport where passenger taxes make up for around 80% of the aero revenues," said the official who further said that the firm also said that its cost of borrowing is around 12% and it should be considered as operating expense while calculating tariff revision.
However, the civil aviation ministry has appointed SBI caps to suggest the ideal rate of return for various airports in India, but still there is no clarity on it.
Currently, Delhi and Mumbai airports follow a 'hybrid' revenue model, by which they subsidise losses from 30% contribution from their non-aero activities like retail ventures and realty development alongside the airport.
Meanwhile, another official from the civil aviation ministry said that GMR is in the process of monetizing land around the airport for around Rs 2000 crore. "Realty development will help the firm not only unlock value but will also help it subsidize losses it makes in the airport vertical," he said further adding that the firms communication with AERA suggest that the former is unlikely to break-even in the airport division before FY16.
GMR's losses in the airport division have more then doubled to Rs 90 crore in the April-June period, quarter-on-quarter and is not so pleased with a 346% hike in airport charges introduced recently. Also, the company recorded Rs 175 crore losses in its airports division in FY11, around Rs 438 crore in FY12 and it also had a cost over-run in the Delhi airport project of about Rs 4000 crore.
shaheen...@network18online.com
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CA. Rajesh Desai
RAJESH DESAI
GMR spokesman
-Cannot comment on Male airport speculation
-Remain committed to Male airport as well as concession
-Maldives government formed committee to look into Male airport bid--
CA. Rajesh Desai
RAJESH DESAI
It was trading with volumes of 114,530 shares. In the previous trading session, the share closed up 0.49% or Rs 0.10 at Rs 20.35.
The company's trailing 12-month (TTM) EPS was at Rs 0.15 per share. (Sep, 2012). The stock's price-to-earnings (P/E) ratio was 130.33. The latest book value of the company is Rs 18.57 per share. At current value, the price-to-book value of the company was 1.05.
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CA. Rajesh Desai
Rajesh Desai
| Exit from highway project signals new GMR strategy |
| The company also needs to get its power plants going if it wants to reduce its debt burden |
| Raghuvir Badrinath & Jyoti Mukul / Bangalore/ New Delhi January 22, 2013, 0:27 IST |
Within two months of its exit from the Male airport following opposition from the Maldives government, GMR Infrastructure has bowed out of another contract: the Ahmedabad-Kishangarh highway project that it had bagged in 2011 from the National Highways Authority of India after an ambitious bid to build, operate and levy toll on it. It was the largest highway project ever to be undertaken in the country and GMR had agreed to pay the government Rs 636 crore instead of seeking viability-gap funding from it.
The project involved broadening the existing highway, and was to start operations this April. The cost of the project was Rs 7,500 crore. The revenue projection for the first year was around Rs 660 crore, and it was expected to grow 14 per cent year-on-year. The company had achieved financial closure and firmed up plans to infuse initial equity of Rs 700 crore. It had placed a contract worth Rs 5,000 crore with Larsen & Toubro. But, in a sudden turnaround earlier this month, it found the project unrealistic to implement, and blamed the stately pace of green clearances for the exit.
For GMR, too, that may have been the case. Unlike the $500-million Male project, which it did not want to exit after running it for nearly three years, this highway project was found un-implementable. Those in the know say GMR Infrastructure’s ambitious bid was to blame. The bid, in which GMR beat Larsen & Toubro, Reliance Infrastructure, GVK and Nagarjuna Constructions, was considered too aggressive. RP Singh, chairman, National Highways Authority of India, says the project was among those bid out on high premium, which the company was finding difficult to implement. Still others think the exit was, in part, an outcome of the company’s asset-light strategy that it had articulated a year ago. While counter risks of severe penalties for terminating the project still remain a challenge for the company, analysts see the termination as a blessing in disguise for GMR. “Financially, it will be positive for GMR as the stress on its balance sheet due to this aggressive project bid could get eliminated. Once the termination is finalised, stake-sale in the road vertical would also be easy and at better value as almost all its (other) projects are operational,” says an Edelweiss report on the company.(GOING OFF TRACK)
Piling up debts
GMR has been under strain over the past couple of years due to a clutch
of reasons: high leverage, lack of adequate gas to fuel its power
plants, delayed increase in tariff at the Delhi airport, and an
overambitious overseas foray, among others. The company has been arguing
that infrastructure is a long-term play and during the past decade it
has built up assets which will result in substantial revenue flows in
the future. While GMR did not respond to an email sent to it, a senior
company executive says, “We have built sizeable assets and have
experience in handling large infrastructure projects. We will now
consolidate. We are going light in building further assets and we will
try to start driving profit margins.” However, despite the setbacks and
the asset-light strategy, GMR is keen to bid for more projects. “It (the
Maldivian issue) gives a lot of experience and we will participate
wherever there is a transparent bidding. This project was made a success
story by International Finance Corporation ,” GM Rao, chairman, GMR
Group, had told Business Standard recently.
Despite this strategy of going asset-light, GMR will have a tough task ahead in getting back into the black. There are issues in power, to begin with. Two of its three power projects, which are operational and have a combined capacity of 608 Mw, face inadequate gas supply, while the third (of 800 Mw) is idle due to the non-availability of gas. However, the company is hoping that during 2013, it will bring into operation additional capacity of 1,300 Mw of capacity based on coal, which will salvage its performance. GMR is also engaged with its lenders to restructure the Rs 2,600-crore debt for 768 Mw gas-based power project in Rajahmundry, the commissioning date of which has been deferred due to the lack of gas supply. GMR has been in protracted negotiations with the government on securing gas from the west coast, the infrastructure for which is in place. However, any decision may take several months to come.
Turbulent times
Meanwhile, its airport vertical has also gone off plan after the Male
setback. GMR was getting as much as Rs 1,200 crore on an annual basis
from the Male airport and was poised for good growth ahead. Its exit,
therefore, is expected to hit the company hard. GMR, though, is not
going down without a fight. It is now demanding a hefty $800 (over Rs
4,000 crore) million from the Maldives government in compensation. Its
flagship, Delhi International Airport, though, is limping back to profit
after the increase in airport development fee late last year. The
losses here have come down drastically and it is expected to turn
positive by next fiscal.
While the power and the airports vertical account for close to 85 per cent of the Rs 7,000-crore annualised revenues of GMR, the highways segment, too, was emerging as the company's new sunshine sector. GMR was in wide-ranging talks with private equity funds to fuel its expansion plans for the vertical. But after its exit from the Rajasthan highway project, which was to be India’s largest highway project spanning 555 km, things have become a little murky for GMR. NHAI has gone to court against GMR and its chairman, Singh, has termed the termination “as being bad in law” as GMR did not give a three-month notice. Singh also says the issue of environment clearance was resolved in principle. It was held up because of the forest clearance, but the ministry of environment and forest had agreed in-principle to delink it from forest clearance. The whole issue had been resolved, he insists.
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CA. Rajesh Desai
Rajesh Desai
GMR Infrastructure’s 9M/Q3 FY 2013 results conference call to be conducted
On Monday, February 11, 2013 at 4.00 pm IST
GMR Infrastructure Limited (GIL), India’s premier infrastructure company, is organising a conference call to discuss its results for the quarter and nine months ended December 31, 2012. The call is scheduled for 4:00 pm (IST) on Monday, February 11, 2013. GIL will be represented by Mr. Subbarao A (Group CFO) and CFOs of GIL’s Business Verticals.
Details of the conference call are as follows:
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Timing |
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4.00 pm IST on Monday, February 11, 2013 6.30 pm Hong Kong / Singapore Time 10.30 am London Time 5.30 am US Time |
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Conference dial-in Primary number |
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India Local access Number |
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6000 1221 (Accessible from all major carriers except BSNL/MTNL) 3940 3977 (Accessible from all carriers) |
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Hong Kong Local Access Number |
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800 964 448 |
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Singapore Local Access Number |
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800 101 2045 |
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UK Local Access Number |
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0 808 101 1573 |
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USA Local Access Number |
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For further information please contact:
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Jitendra Jain / Sreenivasan P R. GMR Infrastructure Limited Tel: +91 22 4202 8014 / 8070 Cell No: 9004383588 / 9004613577 Fax: +91 22 4202 8004 Email: jain.j...@gmrgroup.in |
Khushnum Pestonji Fax: 91 22 6645 1213 Email: khus...@cdr-india.com |
Note: This invite is intended solely for the use of the name addressee(s). Any distribution of this invite is strictly prohibited by the sender. If you are not the intended recipient, we request you to notify the sender immediately and delete this document
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CA. Rajesh Desai
Rajesh Desai
GMR Infra to reduce debt by selling stake in assets
GMR Infrastructure's latest asset-light asset- right' strategy is aimed at easing liquidity pressures in the company. With a debt of over Rs 30,000 crore, the company is keen to offload stake in assets it owns.Last month, the company sold 70 percent stake in an energy venture in Singapore and this helped the company reduce debt by over Rs 2000 crore.
In an interview with CNBC-TV18, Parmit Chadha, CEO - Strategy & Corporate Development, GMR Infrastructure said that the firm is looking to reduce debt by Rs 10,000 crore via this strategy in the near term.
The company is keen to monetise assets at the right time to not only
clean the balance sheet but to also re-deploy funds in ongoing projects,
he added.
Below is the edited transcript of Chadha's interview to CNBC-TV18.
Q:
Give us some clarifications on what the latest is on the National
Highway Authority of India (NHAI) order that you had stepped out of and
what the ramifications of any kind of a renegotiation or getting back on
that deal could entail for you?
A: We have given our proposal. The implications of that project are beyond just GMR Infrastructure. It is time for introspection on how we can get that USD 150 billion of highways project about in the next plan. So, there have been some introspections. There was a delay in the project, which led to some concerns over the viability and a project of this nature does need to be viable for all concerns.
We have given our proposal to NHAI, which we think works for everybody. They have considered it. As far as we know, it is now lying with the ministry. So, it’s a wait and watch time.
Q: Since you submitted the proposal, you must have worked out what the financial implications would be for you in terms of how this would be revenue accretive and a better idea. Can you walk us through this new proposal and how things being backended works for GMR Infrastructure in terms of financial inflows being more predictable?
A: It is difficult to give any concrete number till we have a firm decision on this. In general terms, we have taken a few basic principles. We said that the interest of NHAI must be protected. After all, there is a certain number that we will bid at. So, we have given a proposal where net present value (NPV) for NHAI is protected. It is more of a reshuffling of cash flows, which is reasonable because it takes into account the fact that this is an extremely volatile situation. In many ways it is unprecedented. What we have seen over the last three-four years nobody could have anticipated either in India or internationally.
It is more of backending the cash flows. It allows some of the cash flows for the developer to make the project viable. It protects NHAI’s interest. One would have noticed that under this situation, we would end up paying NHAI more in total terms than we would have otherwise.Q: In your last communication with investors the GMR Infrastructure management communicated that their aim is to reduce overall gross debt by close to Rs 10,000 crore over the next one year, can you just take us through what the timelines and exact strategy is and what kind of asset sales you are looking at to reduce this amount of debt?
A: I would like to go back one step. We have started on this new strategy- Asset Light-Asset Right. We did a fairly detailed exercise in January 2012 where we did a lot of scenario analysis, we did a forward looking view as to what would be happening in macroeconomic, what would be the impact on our financials. One of the things that came out was that irrespective of how the economy moves, the basic financing model for infrastructure needs to change.
If we see the current model which is bank lending to the equity markets, we are at such a stage and such a size where the infrastructure demands on the banking sector would be huge. If we look at the fifth year plan and the USD 1 trillion investment, which is planned when you work out the numbers, you would have to have more than 50 percent of the banks gross credit, you would be hitting sectoral caps, similarly for the equity markets.
So, what we are doing is recycling capital. We have worked on some projects, those projects have reached a certain stage and there is a value associated with that. Depending on how much more value we think we can create, either we cash out the project or we continue with it.
If we look at the three sales which have happened in the recent past, which is the Jadcherla, HEG as well as Singapore, there have been two common themes either we have sold an asset where we feel that we have reached a maximum value that we can contribute to it as developers or it is a case where the asset is not working out as per expectations and therefore we are taking a fairly hard call on that.
As a by product of this, the debt goes down. For example, the Singapore investment has made the most news. The project debt on that as I remember right was around Rs 2,300 crore. So, clearly when we sell the asset, Rs 2,300 crore debt is off our books.
In addition, we have got quite a premium of 1,300 crore. So, our equity is up by that amount. It gives us a double positive. Our gross debt comes down as well as our equity goes up. So, that is the approach that we are taking. It is a combination of looking at assets where we think the value has peaked plus assets which are not working out as we expected.
To do this, we have a fairly formal exercise, we do it once a year, we have an external advisory council composed of very eminent people who give us a view on this. So, there is a priority list which has been made out.
Q: I believe you have identified road and international airport projects next in terms of some of this asset raising, could you just walk us through a timeline either in terms of how much you hope to do in sales this calendar year or even in terms of an amount you opt to get done?
A: It would be premature to give a specific number on either roads or airports and there is a reason for that. Say we started this project last year, but it has taken a year for it to execute. The fact is that all three have come very quickly within the quarter but that does not mean to say that we have started in last quarter. The work started about a year back.
So we have a short list, we have done a fairly detailed analysis. We have a short list of assets that we think we can get value from in recycle. Which works out in what timeline is difficult to say but overall the 10,000 crore for the year is something that we are still gunning for.
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CA. Rajesh Desai
Rajesh Desai
- GMR Infra is set to infuse Rs 1,700 cr fresh equity capital in its energy business during the present financial year.
GMR Infra (NB Insti)· GMR Infrastructure’s (GIL) EBITDA of Rs7.7bn (up 185% YoY, 12%/17% above our/Bloomberg estimates, respectively) and improvement in EBITDA margin by 1,020bps at 38.3% was primarily driven by the change in the accounting policy related to National Aviation Company of India (NACIL) - from receipt basis to accrual basis - which provided incremental EBITDA of Rs1.5bn.· The company posted a net profit of Rs5.8bn, primarily driven by exceptional income of Rs7.8bn on account of divestment of stake in its Singapore subsidiary.· Adjusted for exceptional income, the company posted a net loss of Rs2.0bn (above our/Bloomberg consensus estimates of net loss of Rs1.4bn/Rs1.0bn, respectively) primarily due to high interest costs and increased net loss in the power generation segment.· We have retained our Buy rating on the stock with a SOTP-based target price of Rs25.
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CA. Rajesh Desai
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CA. Rajesh Desai
Rajesh Desai
GMR Airports Ltd, a subsidiary of GMR Infrastructure Ltd, has acquired a 17.03% stake in Delhi Duty Free Services at Indira Gandhi International Airport here for an undisclosed sum. Delhi Duty Free is operating, maintaining & managing the duty free outlets at the airport under concession from Delhi International Airport Pvt Ltd (DIAL) for a period of 15 years up to 2024-25. DIAL has 49.9% stake at Delhi Duty Free. Yalorvin Ltd, a subsidiary of AerRianta International, wholly owned by the Dublin Airport Authority (an undertaking of the government of Ireland), has a 33.07% stake. GMR Group is the lead member of a consortium controlling a 54% stake in DIAL.
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CA. Rajesh Desai
Rajesh Desai
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CA. Rajesh Desai
Rajesh Desai
GMR to raise Rs 550-cr by selling SEZ land
GMR Infrastructure, the Bangalore-based publicly held infrastructure developer, is understood to have zeroed-in on 2 potential buyers to exit a part of its land holdings on which it was planning to develop a special economic zone (SEZ) in Krishnagiri district of Tamil Nadu. GMR is looking to sell a total of 1,100 acres of the close to 3,000 acres it has for Rs.550 crores. This move to sell a part of its land holding in one of its SEZ is part of an overall move by GMR to exit some of its assets as part of its 'asset light - asset right' strategy. GMR during 2013 has been pretty much aggressive on shedding assets through which it has raised close to Rs.3,000 crores already during the first half of the year. GMR had earlier exited a power project in Singapore for Rs.2,500 crores, while divesting a 74%stake in a highway project & another coal mine in South Africa. The SEZ at Krishnagiri was part of GMR's strategy to get into urban infrastructure space spanning industrial investment zones as well as domestic tariff areas.
IMPACT: Neutral. The company with its new strategy is eyeing to cool off its debt burden which stands at ~INR 3000 crores but then the company will not be able to enjoy the tax benefits on the intended sell part of the land.--
CA. Rajesh Desai
Rajesh Desai
The second 350 MW unit of the GMR Group’s coal-based thermal power plant at Kamalanga in Odisha’s Dhenkanal District has been successfully synchronized with the grid. The first unit of 350 MW was declared commercially operational on April 30, 2013. Following this, the combined generation capacity of the GMR Group has reached 1836 MW.
The Bangalore headquartered global infrastructure major with interests in airports, energy, highways and urban infrastructure is establishing the 4x350 MW GMR Kamalanga Energy (GKEL) in two phases of 3x350 MW and 1x350 MW, respectively. Work on commissioning the third unit of 350 MW in the first phase is in advanced stages and is likely to be completed by August 2013. GKEL would supply power to Odisha, Bihar, Haryana and other parts of the country.
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CA. Rajesh Desai
Rajesh Desai
Rajesh Desai
this, GMR Holdings which was holding a little over 70.3 % in GMR
Infrastructure, the four trusts will get to hold indirectly 17.57 % each
through their respective trusts in the public company.( BS )
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CA. Rajesh Desai
Rajesh Desai
GMR Infrastructure’s group company GMR Highways has signed a definitive agreement with India Infrastructure Fund (IIF) to divest 74% stake in GMR Ulundurpet Expressways (GUEL). This step is in line with GMR Group’s Asset Right and Asset Light Strategy and the transaction is subject to closing conditions customary to such transactions. This is a second major divestment in GMR’s roads portfolio in less than 6 months. IIF emerged as successful bidder in buying majority stake in GUEL, which attracted strong interest from several major investors from India and abroad.
GUEL operates the highway stretch of about 73 km, from Tindivanam to Ulundurpet on National Highway 45 in the state of Tamil Nadu. The project commenced commercial operations in July 2009. GMR Group will receive a consideration of about Rs 222 crore for the sale of 74% equity stake. Link Legal India Law Services acted as a Transaction Legal Advisors for GMR Group while Udwadia Udeshi & Argus Partners acted as Advisors for IIF.
GMR Infrastructure is a Bangalore headquartered global infrastructure major with interests in Airports, Energy, Highways and Urban Infrastructure sectors. The company has 14 power generation assets of which 8 are operational and 6 are under various stages of development and 8 Road assets, of which 7 are operational and one is under construction.
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CA. Rajesh Desai
Rajesh Desai
GMR, GVK can bid for six airports' privatisation
Norms limiting airlines' stake in SPVs managing airports to hurt Tatas
CA. Rajesh Desai
Rajesh Desai
(Reuters) - GMR Infrastructure (GMRI.NS) and contractor Megawide Construction Corp (MWIDE.PS) are the likely winners of a $400 million airport terminal tender, the biggest so far under the Philippines' public-private partnership programme.
The consortium beat six others including the country's top conglomerates at an auction on Thursday, offering a premium of 14.4 billion pesos for the 25-year concession to operate central Philippines' Mactan-Cebu International Airport - the country's second-biggest - and build one of its terminals.
The project is a test of the government's resolve to boost economic growth through public-private partnerships (PPP) in infrastructure, following delays in previous high-profile tenders that have raised doubts about the scheme's effectiveness.
The Megawide-led offer was about 400 million pesos above the second-place bid from a group led by property-to-banking firm Filinvest Development Corp (FDC.PS) and Changi Airports Saudi Ltd. The winning bidder will likely be announced in early January.
Megawide, with a market cap of $428 million, has won three out of five contracts -- valued at around 26 billion pesos -- tendered by the government under the three-year-old PPP scheme.
It bested bigger rivals that included the country's most valuable conglomerate, SM Investments Corp (SM.PS), and most diversified, San Miguel Corp (SMC.PS). SM teamed up with Flughafen Zurich AG (FHZN.S) while San Miguel partnered with Incheon International Airport Corporation.
Other bidders were the consortium of Metro Pacific Investments Corp and JG Summit Holdings Corp (JGS.PS) with partner Aeroports de Lyon; First Philippine Holdings Corp (FPH.PS) and Wellington International Airport Limited; and Ayala Corp, Aboitiz Equity Ventures Inc (AEV.PS) and Houston Airport System.
Megawide and GMR aim to build an airport terminal that can accommodate 25 million passengers a year, more than three times the government requirement, Oliver Tan, chief finance officer at Megawide, told reporters.
But he said the plan would depend on developments in the tourism industry and the security situation, with Manila battling Muslim rebels in the south and a communist insurgency.
The group's bid reflects its "expectations in terms of the internal rate of return" of the project, Tan said, adding GMR would take a 40 percent stake in the joint venture.
GMR operates and maintains three airports in New Delhi and Hyderabad in India, and in Istanbul.
Megawide shares climbed as much as 5 percent in afternoon trade after the airport bids were announced, but later erased its gains to settle flat. The broader market was down 2 percent.
PREMIUM OFFER
Delays in the bidding process for high-profile PPP projects have clouded prospects of an infrastructure boost to sustain Philippine economic growth at 7 percent or higher.
But Manila is now moving to expedite the process, opening bids for two projects this week.
On Monday, officials said a consortium of conglomerates Ayala Corp (AC.PS) and Metro Pacific Corp (MPI.PS) gave the best bid for a 1.72 billion peso contract to operate a smart-card system for the elevated rail network in Manila.
The Mactan airport connects tourist spots in the central Philippines with direct flights from Asian cities such as Hong Kong, Singapore, Seoul and Tokyo.
The existing terminal was designed with a 4.5 million passenger capacity, but 6.2 million passengers passed through in 2011.
(Writing by Rosemarie Francisco; Editing by Stephen Coates)
CA. Rajesh Desai