GMR investors approve issue of Rs 1,136-crore preference shares

GMR Infrastructure on Thursday said its shareholders have approved issue of compulsorily convertible preference shares (CCPS) worth Rs 1,136.67 crore to a group of investors, including an arm of Singapore-based investment firm Temasek Holdings.

The shareholders have also approved issue of securities up to Rs 2,500 crore or equivalent and increase in authorise share capital of the company to Rs 1,950 crore from existing Rs 750 crore, the company said in a filing to the BSE.

"This is to inform that shareholders of the company at the extra-ordinary general meeting, held on March 20, 2014, have approved the following: increase in authorise share capital, preferential allotment of cumpulsorily convertible preference shares and issue of securities up to Rs 2,500 crore or equivalent thereof," it said.

In its notice to the shareholders for the extraordinary general meeting, GMR has said that it proposes to allocate CCPS worth about Rs 788.82 crore to Dunearn Investments (Mauritius) Pte Ltd, a wholly-owned subsidiary of Temasek.

Other investors, IDFC, GKFF Ventures, Premier Edu-Infra Solutions Pvt Ltd and Skyron Eco Ventures Pvt Ltd were proposed to get CCPS worth Rs 41.91 crore, Rs 54.48 crore, Rs 41.91 crore and Rs 209.55 crore, respectively.

The company has said that the proceeds of the preferential issue of the CCPS will be used for infusion of capital into its group companies and/or purchase of shares, including for consolidation of its shareholding in its group companies.

The CCPS is proposed to be converted into equity shares in two tranches after their maturity in 17 and 18 months respectively. Post-conversion, the investors would together get a 12.24 per cent stake in GMR infrastructure.

The allotment of CCPS is in lieu of the investments made by Temasek, IDFC and other investors in GMR's subsidiary GMR Energy.

Last month, the investors, led by Temasek and IDFC, had agreed to restructure their existing investment worth Rs 1,395 crore in GMR Energy Ltd and an announcement was made by the Bangalore-based firm on February 21.

Talking about increase in share capital, GMR has said in its notice to the shareholders that it is required to give effect to the preferential allotment of the CCPS and their conversion.

On issuing securities worth Rs 2,500 crore, the company has said that it is required to facilitate and meet the capital expenditure needs of the ongoing projects of the company, its subsidiaries or associates.

The company will decide the mode of issuing security at a later stage and would be decided by its Board.

Shares in GMR Infra, on Thursday, ended at Rs 21.60 apiece on the BSE, down 0.92 per cent from the previous close.