GMR balance sheets are improving steadily
The bullish sentiment in the equity market on Thursday, along with positive tidings from GMR Infrastructure Ltd (GIL) about improving its balance sheet, lifted the stock price by 2.91 percent. The infrastructure firm announced that US private equity firm KKR Capital Markets will lend Rs.1,000 crore to GMR’s holding company.
This, in turn, will be used to subscribe to the rights issue in the listed entity, GMR Infrastructure. Importantly, GMR Infrastructure’s market capitalization doubled over the last one year amid challenging times and is currently at what it was three years ago. Renewed interest in the stock can be attributed to the firm’s strategic efforts to trim debt. Over the last couple of years, its asset-light strategy has been focused on divestment of stakes and asset sale across roads and airports.
This is being done as it is aware that GMR Infrastructure is lying amidst a debt problem. In order to do away with so they are taking speedy steps to recover from the situation. It would be seen as whether the steps taken are effective.
Source: Mint
asset-light strategy, GMR Holdings, GMR Infrastructure Ltd, KKR Capital Markets, US private equity firm
