GMR Infrastructure announced a composite ‘scheme of arrangement’ involving vertical split demerger of the ‘non-airport business’.
The Board of GMR Infrastructure announced the scheme together with other group companies — GMR Power Infra and GMR Power and Urban Infra.
Under the scheme, businesses such as energy, EPC, urban infrastructure, among others, of GIL will be split into GPUIL as a going concern, alongside amalgamation of GPIL with GIL, as a step preceding the demerger.
“The restructuring is a step in the right direction towards creating pure plays in different businesses of the group, thereby attracting sector-specific global investors and unlocking value for the current shareholders of GIL,” the company said in a statement.
“This will also pave the way for focused growth and sustained value creation for all stakeholders over a period of time,” it said.
According to the statement, separate listing of both airport and non-airport businesses will also help in simplifying the corporate holding structure.
“The vertical split demerger will go a long way in facilitating deeper understanding of the airport business independently as compared to other business verticals within the group,” the statement said.
The company said the scheme is subject to the customary approvals from the stock exchanges, SEBI, NCLT, shareholders and creditors, among others.
Besides, the scheme is expected to create ‘Mirror’ shareholding of GIL in GPUIL with all existing shareholders of GIL becoming a shareholder of GPUIL in the same proportion.
“The scheme envisages issue of 1 additional share of Rs 5 each of GPUIL for every 10 shares in GIL of Re 1 each as on the record date,” the statement said.
Post the implementation of the scheme, GIL will emerge as India’s only pure play listed airports company.
“The appointed date for the scheme, being the date on which the undertakings shall vest in the respective resulting companies, has been fixed on April 1, 2021,” the statement said.