GMR Group plans vertical demerger of business divisions
V Rishi Kumar The GMR Group is set to restructure its business with a vertical demerger wherein its airports arm will form one unit while GMR Power, Urban Infrastructure, Highways and EPC constituting will form another. Subsequently, GMR will list them as separate entities.
Having secured a ₹8,000-crore strategic investment from a Tata Group entity, GIC of Singapore and SSG Capital Management, GMR has embarked on a restructuring process across various sectors with a National Company Law Tribunal (NCLT) approved vertical demerger plan.
The company has already divested about 44.44 per cent of its stake in the airports business at a valuation of ₹24,800 crore, which includes earnouts of up to ₹4,400 crore. At the investor presentation after declaring its Q1 results, GMR said it has begun the process of obtaining regulatory approvals for the restructuring.
