Shares of GMR Infrastructure Ltd (GIL) rose substantially following a proposed USD1.2 billion funding injection into the airports business from Tata Group, Singapore sovereign wealth fund GIC and SSG Capital Management.
The deal – which is subject to regulatory approval – would leave GIL and its subsidiaries with a 54% stake. Tata would hold 20%, GIC 15%, SSG 10%, and Employee Welfare Trust will hold 2%.
GIL managing director and CEO Grandhi Kiran Kumar said in a statement that the investment would strengthen its balance sheet.
Following the investment, GMR plans to decouple its airports, energy, highways, urban infrastructure, and transportation businesses.
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