GMR Infrastructure to trim debt, raise up to Rs 4k crore from stake sale

MUMBAI: GMR Infrastructure today said it is looking to raise close to Rs 3,000-4,000 crore by divesting stakes and churning of assets in some of its projects in the road and power sectors in a bid to reduce debt and invest in new ventures.

The company had a net debt of Rs 33,600 crore in its books as of FY12.

"In the current scenario, when the capital is not available for the infra sector, one option is to divest projects which you consider non-core. So, in infrastructure, after a particular point of time, you churn assets and that is the model of infra business," GMR Infrastructure Chief financial Officer A Subbarao told reporters on the sidelines of a banking event here.

"We have a target of close to Rs 3,000-4,000 crore.. how much will be that coming from churning of assets and how much will be from divestment (is not known) ..," he added.

Subbarao said the company may look at assets in road and power sectors to raise the money.

GMR Infra, which is in news for the CAG report on the Delhi airport, is in process of reducing its debt level to deleverage its balance sheet.

On the debt reduction target, Subbarao said, "by the end of this financial year, debt to equity ratio will be in the 3:1 range."

GMR Infra had posted a net loss of Rs 603 crore last financial year and Rs 94 crore in the first quarter of this fiscal on account of losses at the Delhi airport among others.

Asked about time line in which the company will post profit, Subbarao said he would not be able to give any forward looking statement in this regard.

"I will not be able to give any forward looking statement. However, things are certainly improving and we will be better than last year in bottomline front."