GMR Airports Infrastructure Plans to Raise Rs 5,000 Crore
New Delhi [India], August 14, 2024: GMR Airports Infrastructure has approved a plan to raise funds of up to Rs 5,000 crore in one or more tranches. The company announced this decision in a filing to the exchange.
Fundraising Methods
The fundraising will be conducted through the issuance of securities, including a Qualified Institutions Placement (QIP) or Foreign Currency Convertible Bonds (FCCBs). A QIP allows companies to raise capital by selling equity shares or convertible debentures to qualified institutional buyers like mutual funds, family offices, or foreign institutional investors (FIIs). FCCBs are a combination of debt and equity, functioning like regular bonds but also giving the bondholder the option to convert the bonds into stock.
Board Meeting Decision
The Board of Directors approved this plan during a meeting held on August 13, 2024. The company stated, “We wish to inform you that the Board of Directors of the company, at its meeting held on August 13, 2024, has inter alia approved the enabling resolution for raising funds of up to Rs 5,000 crore in one or more tranches, through the issuance of securities, including a Qualified Institutions Placement and/or Foreign Currency Convertible Bonds and/or any other securities.”
Quarterly Financial Results
On the same day, the company reported its quarterly results, announcing a consolidated net loss of Rs 258.2 crore for the first quarter that ended on June 30, 2024. This is compared to a net loss of Rs 122.5 crore in the same period last year. However, the company also reported a 19.06% increase in revenue from operations, reaching Rs 2,402.20 crore, compared to Rs 2,017.63 crore in the corresponding period of the previous fiscal year.
Doubts Revealed
GMR Airports Infrastructure -: GMR Airports Infrastructure is a company in India that builds and manages airports. They help make sure airports run smoothly and safely.
Rs 5,000 crore -: Rs 5,000 crore is a large amount of money in Indian currency. One crore is equal to 10 million, so 5,000 crore is 50 billion rupees.
Quarterly Loss -: A quarterly loss means the company lost money over a three-month period. In this case, GMR Airports Infrastructure lost money from April to June 2024.
Securities -: Securities are financial instruments that can be traded, like stocks or bonds. Companies use them to raise money from investors.
Qualified Institutions Placement (QIP) -: QIP is a way for companies to raise money by selling shares to big investors like banks or mutual funds. It helps companies get funds quickly.
Foreign Currency Convertible Bonds (FCCBs) -: FCCBs are bonds issued by a company that can be converted into shares of the company later. They are issued in a foreign currency, not Indian rupees.
Board Meeting -: A board meeting is a gathering of the company’s top leaders to make important decisions. They discuss plans and strategies for the company’s future.
Consolidated Net Loss -: Consolidated net loss means the total amount of money lost by the company and its subsidiaries combined. It shows the overall financial health of the company.
Revenue from Operations -: Revenue from operations is the money a company makes from its main business activities, like running airports in this case. It shows how well the company is doing in its core business.