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| Edited By: KV Ramana |Source: DNA |Updated: Mar 18, 2018, 03:34 AM IST
GMR Infrastructure is planning Initial Public Offerings (IPO) for the holding companies of its energy and airport businesses, with the primary objective of providing an exit to private equity investors.
Two sources familiar with the development said the energy business holding company will go public in fiscal 2014, while the airport business will go public in fiscal 2016.
A Subba Rao, GMR’s chief financial officer, told DNA, “It is not possible to give the exact timeframe. There are several factors that go along with the IPO proposal. But, private investors will find an exit through the IPOs.”
Several marquee private equity players have invested in the company’s businesses, including Temasek, IDFC, Argonaut Ventures, Macquarie SBI Infrastructure, Standard Chartered and JM Financial.
The energy holding company has about 4,140 mw of projects under implementation, while GMR operates three airports — Hyderabad, Delhi and in Istanbul, Turkey.
Another airport at Male is also being developed by the company.
Before monetisation, GMR will consolidate its airport assets because the Maldives and Turkey operations are not part of the holding company currently.
“We need to talk to the private equity investors before consolidating. But even for this, there is no timeframe. We can do it anytime. It all depends on how the investors react to the proposal since consolidation will have an impact on the valuation and that should be acceptable to the investors,” Subba Rao said.
