Report: GMR Group to list subsidiary in London

The Indian infrastructure heavyweight is reportedly consolidating its overseas assets under holding company GMR Infrastructure International ahead of an overseas listing.

Bangalore-based GMR Group plans to list its global holding company GMR Infrastructure International on the London Stock Exchange, according to a report in India’s Business Standard.

The listing would enable the group to raise capital from the international market, where infrastructure assets have higher valuations, sources told the Indian daily. 

GMR Group’s overseas assets include a 50 percent interest in InterGen, a Netherlands-headquartered power generation company; Island Power, a Singapore-based electricity generation project; and a stake in the Istanbul Sabiha Gokcen International Airport. The group acquired its stake in InterGen for $1.1 billion last year through GMR Infrastructure International.

According to a recent group presentation, GMR Group aims to have $10 billion in assets in the next five years, the Indian daily reported.

Last month, group subsidiary GMR Infrastructure walked away from an effort to raise $500 million from Indian institutions via a qualified institutional placement (QIP), “in light of the existing market conditions”, the firm stated. This was in contrast to 2007, when a $1 billion QIP for GMR Infrastructure was oversubscribed by Indian institutions.

GMR Group did not respond to requests for comment at press time.