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GMR Infra Gains 10% To Hit 52-Week High On Plans To List Its Airport Business

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Shares in GMR Infrastructure Limited (GIL) gained up to 10% in early trade on August 28, 2020 and hit a 52-week high of Rs. 28.25 per share on the BSE. On Thursday, the company announced a strategic rejig of Group companies, involving vertical split demerger of the non-airport entities including energy, EPC services, urban infrastructure etc of GIL into GMR Power and Urban Infra Limited (GPUIL).

GMR Infra Hits 52-Week High On Plans To List Its Airport Business
 

As a step preceding the demerger, the Group will also combine GMR Power Infra (GPIL) and GIL.

And GIL will become a solely airport-operating company to become the first airport company to debut on the Indian bourses.

"The restructuring is a step in the right direction towards creating pure plays in different businesses of the Group," GMR Group said in a statement.

Moreover, separate listing of airport and non-airport entities will enable simplification of the corporate holding structure. Also, the rejig plan will help in wooing sector-specific global investors, unlock value for GIL shareholders and provide a path to focused growth and value creation over a period of time for all stakeholders.

After the split, shares of GPUIL will be allotted to all shareholders of GMR Infra. So, all the current shareholders of GIL will become shareholders of GPUIL in the same proportion. The scheme envisages issue of one additional share of Rs 5 each of GPUIL for every 10 shares in GIL of Re 1 each as on April 1, 2021.

At 12:14 pm, the stock pared all its morning gains to trade lower by 0.39% or Rs. 0.1 at Rs. 25.6 per share on the BSE.

GoodReturns.in

Read more about: gmr infrastructure
Story first published: Friday, August 28, 2020, 12:20 [IST]
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