GMR Infra is the top gainer on the BSE, going up to Rs.18.05 from previous close of Rs.16.95. It remains firmly in the green currently, up 4.5%.
Two reasons for this rise. Firstly, on 7th June, the company announced that it has been selected to develop, operate and manage the new international Kastelli airport project in Heraklion, Crete island of Greece, in partnership with Greek infrastructure major Terna S.A..
GMR Airports will be the designated airport operator in the consortium for this project. The concession period for the greenfield project will be 35 years, including phase-1 construction of 5 years. The Greece project will be GMR Group’s second in Europe after it had developed Istanbul’s Sabiha Gokcen airport.
The momentum of this news continues and was fueled by the second news that its JV with Megawide Construction has made an offer to upgrade Mactan Cebu International Airport in Philippines. Here, it proposes to assume air-side operations currently handled by the government.
Actually, the moods on the counter of GMR has turned around ever since it announced a debt reduction – its gross debt fell from Rs.37,480 crore to Rs.19,856 (YoY) at end of FY17. Its net debt to EBITDA ratio also improved from 10.2 to 4.3.