India’s GMR Group has unveiled plans for a major restructuring of the company to separate the airport business into a pure play unit.
The scheme involves moving the non-airport business, which includes energy, urban infrastructure and EPC services, to GMR Power and Urban Infra (GPUIL). As a result, GMR Infrastructure (GIL) will turn into a pure play airport company.
GMR Group, which operates the New Delhi and Hyderabad airports, also seeks a separate listing of the airport and non-airport businesses.
According to the company, the restructuring will simplify the corporate structure and better address sector-specific challenges.
In addition, it will enable the company to focus on the airport business and support its further growth.
GMR Infrastructure managing director and CEO Grandhi Kiran Kumar said: “Over the years, GIL has grown multi-fold and with various divergent businesses housed under one holding structure.
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“Shareholders have been suggesting us to offer pure plays-listed vehicles to ride the growth trajectory of matured and scaled-up infrastructure businesses.
“We have been closely evaluating various options and as a step in that direction, post the separation of non-airport business, GIL will be ‘India’s only pure play-listed airports company’ and continue its growth journey.”
The restructuring is subject to the completion of customary conditions, including approvals from shareholders, creditors, stock exchanges, SEBI and NCLT.
Notably, Groupe ADP completed the purchase of a 49% stake in GMR Airports last month.
The €1.36bn deal was first announced this February and was completed in two stages.