GMR Infra is among the top five gainers on the BSE. In fact the stock has been gaining for the last 3 days and has risen 4% during this period. The stock rose 5.5% today to Rs.15.97. Its 52-week high is at Rs.21.50.
The company announced yesterday that it has signed a definitive Share Purchase Agreement with Adani Power Ltd (APL) for the sale of the entire stake 47.62% in GMR Chhattisgarh Energy Ltd. (GCEL), held by its wholly owned subsidiary GMR Generation Assets Limited (GGAL).
This deal will lead to a significant deleveraging for the GMR Group. GCEL had an outstanding debt of Rs.5,926 Crore as on March 31, 2019.
In addition, GIL’s profitability is expected to improve significantly considering GIL consolidated profit for FY2019 was adversely impacted by Rs.516 crore on account of Chhattisgarh Power Plant.
Further, the Corporate Guarantees to the extent of Rs.892 Crore furnished by GMR Group companies - GMR Energy Ltd, GGAL and GMR Power Corporation Ltd shall be released.
Successful resolution of two stressed assets- i) GMR Rajahmundry Energy Ltd (GREL) – concluded bilateral implementation of RP on May 3, 2019, and ii) now GCEL, will go a long way in deleveraging and de-risking the Balance Sheet.