GMR Infra’s asset sale to trim debt bears fruit as airports business takes off
GMR Infrastructure Ltd has been in the spotlight for all the right reasons. Besides announcing decent results for the December quarter (Q3 FY20), the infrastructure giant’s efforts to monetize assets, trim debt and lower interest costs are beginning to bear fruit.
Last week, the private sector infrastructure firm sold its stake in the coal-fired Kamalanga power project for ₹5,320 crore. This will trim ₹4,140 crore of debt in the project. Meanwhile, it has signed an agreement to sell about 49% stake in the airports entity to a Tata group-led consortium, which will bring in about ₹8,000 crore into its coffers.
Although this may be a trickle in GMR Infra’s humungous debt of ₹25,660 crore, it is reassuring for investors. Not surprisingly, the stock, which was range-bound is inching up, rising 13% in the past two weeks.
