GMR Group secures Rs 6,300 crore investment from ADIA

GMR Group has announced a significant investment of Rs 6,300 crore from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA). The funding will be allocated to structured debt instruments issued by GMR Infra Enterprises Private Limited (GEPL), pending regulatory approvals and certain conditions, according to the official release.

This strategic investment aims to refinance the external debt of GEPL, which is the promoter of GMR Airports Limited (formerly GMR Airports Infrastructure Limited). The move is expected to significantly reduce the GMR promoter group’s pledge on its shareholding in GMR Airports Limited, allowing for greater financial flexibility.

"Through this exercise, GEPL will be able to consolidate multiple lenders into a single source of capital," said official release. 

Kiran Grandhi, Corporate Chairman of GMR Group, emphasised the company’s commitment to reducing corporate debt over the years. He highlighted recent restructuring efforts, including the demerger of GMR Power and Urban Infra Limited from GMR Airports Infrastructure Limited, and the subsequent merger that resulted in the formation of GMR Airports Limited as a focused, publicly listed airport platform. Grandhi stated, "This investment from ADIA will facilitate the repayment of all external debt at GEPL, strengthening our ability to support the continued growth of GAL.”

ADIA’s Executive Director for the Infrastructure Department, Khadem AlRemeithi said, “India’s aviation sector has strong growth prospects, backed by the positive long-term fundamentals of the Indian economy, while GMR Group is one of the country’s leading airport operators. This investment aligns with our approach of backing entities which are developing world class transport assets that benefit from demographic growth and increased economic connectivity.”