GMR Airports board clears proposal to raise up to Rs 5,000 crore

New Delhi, Aug 21 (PTI) GMR Airports' board on Thursday approved a proposal to raise up to Rs 5,000 crore through issuance of securities.

Besides, the board of the company has approved setting up of a wholly-owned subsidiary as a Special Purpose Vehicle (SPV) to undertake the cargo city project at the Indira Gandhi International Airport (IGIA) in the national capital.

The proposals were cleared by the board at its meeting held on Thursday.

According to a regulatory filing, the board has given its nod to an enabling resolution for raising of funds up to Rs 5,000 crore in one or more tranches, through issue of securities, including fully paid-up equity shares and non-convertible debentures.

The company might also look at issuing Foreign Currency Convertible Bonds (FCCBs) to raise the funds, it added.

Meanwhile, GMR Airports Ltd will be developing the cargo city spread over 50.5 acres of land at the IGIA.

The IGIA is the country's largest airport and is operated by the Delhi International Airport Ltd (DIAL), a subsidiary of GMR Airports.

GMR Airports has emerged as the successful bidder to finance, design, develop, construct, operate, manage and maintain the cargo city at the airport.

The company is also operating other airports, including Hyderabad and Goa. PTI RAM SHW