Banks, FIIs buy 9% in GMR Infrastructure for $1 bn

Mumbai: A clutch of domestic banks and foreign financial investors (FIIs) has picked up around 9% stake in GMR Infrastructure, the flagship company of the GMR group, for around $1 billion through a qualified institutional placement (QIP).
The deal is the largest among the recent QIP deals. The investors include State Bank of India (SBI), Canara Bank, Capital International, Citigroup, T Rowe Price, Credit Agricole, UBS and Kotak Mahindra.
The deal involves selling part-stake by promoters and issuing fresh shares. Post-issue, promoters’ holding will be down to 74%, while the public and new investors together will hold the remaining 26%. Sources said SBI and Canara Bank were the largest investors in the QIP, investing Rs 500 crore each. Other investors have invested between $40 million and $70 million.
GMR Infrastructure CFO Madhu Terdal said funds would be used for the construction of GMR Istanbul’s airport in Turkey, and buyouts in international power and airport markets.
Aviation industry sources said the group was looking at opportunities to bid for airport projects in Africa and Eastern Europe.
13/12/07 Rajesh Unnikrishnan/Economic Times

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Categories: Airports Dec 2007