InvestorQ : Why is GMR looking to hive off its airports business separately?
Angel dcosta made post

Why is GMR looking to hive off its airports business separately?

Answer
user profile image
Anamika Sodhani answered.
2 months ago


You are right that the GMR group has announced a bottom-up restructuring of its business verticals from a strategic standpoint and this would include spinning off and listing its airports business. GMR operates the lucrative Delhi and Hyderabad airports.

Under the terms of the restructuring proposed by GMR, the non-airport businesses consisting of power, urban infrastructure and EPC services will be demerged into GMR Power and Urban Infra Ltd as a going concern.

Under the deal, GMR Infrastructure Ltd or GIL will become a pure play airport company. The restructuring will create pure plays in different businesses of the group and will help the group to attract institutional funding in granular businesses, which is the ideal route.

All the share holders of the original GIL will get 1 share each of both the demerged companies.