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GMR Infrastructure

GMR Infrastructure Ltd has informed that GMR Energy Ltd, the Company's 100% Subsidiary Company had entered into a Share Purchase and Joint Venture Agreement to acquire 80% stake of a Himtal Hydro Power Co. (P) Ltd. having its registered office at Kathmandu, Nepal ("Himtal"). Himtal have subsisting Survey Licence issued by the Department of Electricity Development, Govt. of Nepal for undertaking the Feasibility Study and Environmental Impact Assessment Study for setting up a 250 MW Upper Marsyangdi 2, Hydro Power Project, located in Upper Marsyangdi, Nepal.


Further the Company has informed that, the necessary application has been submitted to the Investment Promotion Board, Department of Industries of Government of Nepal, seeking their approval for the same.


India's GMR Infrastructure has launched a share sale worth $500 million at a price band of 143 to 145 rupees each, two sources with knowledge of the deal said on Monday.


Enam, ICICI Securities, IDFC-SSKI, JP Morgan, Kotak Mahindra Capital, Morgan Stanley and UBS are arrangers to the offer, the sources said.


'GMR Group today signed an agreement with the international power producer InterGen to acquire its 100 per cent ownership stake in Island Power,' GMR Infra said in a filing to the Bombay Stock Exchange.

Island Power is currently developing an 800 MW power facility in Singapore. The project would bring in about $1.5 billion (Rs 72 billion) foreign direct investment in the country.

"Island Power will be GMR's first and flagship project in Singapore and the south-east Asia region, and we will be focusing our efforts on making this a success," GMR Group South East Asia Head Ng Quek Peng said.


The construction of the power plant would begin by fourth quarter of 2010 and is expected to be operationalised by 2013, the filing said.


GMR Group, which had bought an indirect 50 per cent control in Island Power in June 2008, has now acquired full and direct ownership of the Singapore energy development project, the filing said.


Certainly, a higher PE indicates too costly; however this also indicates that company enjoys very high trust level by the investors. There is huge promoter holding; and after promoters FII's etc are having good shareholding too....


Share Holding Pattern


Holder's Name : % Share Holding

  • Promoters....................> 74.91%
  • ForeignInstitutions........> 9.22%
  • FinancialInstitutions......> 7.92%
  • GeneralPublic...............> 5.58%
  • OtherCompanies...........> 1.43%
  • NBanksMutualFunds......> 0.60%
  • Foreign NRI..................> 0.21%
  • Others.........................> 0.13%


Also read...While GMR’s long term prospects look good, the run in the share price (now at Rs 160) has brought it closer to its sum-of-the-parts based value (as assigned by analysts) of Rs 150-200. Investors should hence, consider the stock on dips and with a long-term perspective.

To Read the article Click Here

Key Takeaways from GMR Infrastructure's concall:

  • Revenues has boosted by Hyderabad Airport operations.
  • Bottomline has hit by higher interest costs, depreciation, forex loss.
  • Net sales up 86% at Rs 995.2 crore.
  • PAT at Rs 24.5 crore versus Rs 80.03 crore.
  • Forex Loss stood at Rs 25.2 crore in Q3.
  • Interest Costs stood at Rs 113.2 croe.
  • GMR Aviation to buy GMR’s aviation division for Rs 29 crore under slump sale.
  • 252 cores revenues from Delhi Airport for the quarter.
  • There was negative growth in cargo and -9% growth in passenger traffic( Delhi Airport).
  • Net revenues from delhi airport has increased by 15% on YoY basis.
  • Construction of Departure Terminal at Delhi Airport will be completed in Q4.
  • 103 crore revenue from Hydrabad Airport for the quarter.
  • Cargo operation at Hydrabad Airport is profitable.
  • Slow on SEZ projects because of the economic slowdown.
  • GMR has completed its Ambala- Chandigarh project in this qarter.
  • It will complete its other 3 projects, Viz., Adloor – Gundla Pochanpalli, Thondapalli – Jadcherla, Tindivanam – Ulunderpet in the next quarter.
  • GMR Energy started its operation in this quarter and contributed Rs 39.1 crore to revenues.
So, this is one of the share to trust and invest your hard earned money.

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