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GMR Infra finalizes plans to raise debt of Rs 5400 crore

11 Apr 2012 Evaluate

State owned GMR Infrastructure has finalized plans to raise debt of Rs 5,400 crore to finance its recently won highway project between Rajasthan and Gujarat. The company has signed an agreement with IDBI to be the lead consortium for debt syndication, whereby the latter will underwrite half the debt and syndicate the rest.

With debt almost tied-up, GMR Infra has also firmed up plans to also infuse equity into this project. The company would be required to invest around Rs 2,000 crore as equity over the next three year, from July 2012. While the company is ready with around Rs 800 crore, it is in the final stages of raising the rest from private equity players.

GMR is expected to start to earn revenue from the first day, as this is an expansion of existing highway. This project will be implemented through a design-build-finance-operate-and-transfer model. This section is a part of the Delhi Mumbai (Golden Quadrilateral) corridor and goes through the newly announced Delhi-Mumbai Industrial Corridor (DMIC) project, which has very high growth potential for commercial and tourist traffic.

Six months earlier, the publicly-held company, based in this city, had in the face of global competition won the bid for six-laning of the 555-km Kishangarh-Udaipur-Ahmedabad stretch.

GMR Airports Share Price

97.13 0.26 (0.27%)
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Dreamfolks Services 83.01
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