BANGALORE: GMR Infrastructure Ltd , which develops airports and power projects, is looking to raise $150 million through private equity for its airport arm, its group chief financial officer said on Tuesday.
The company was in the process of securing final government approvals for the deal, which had already won clearance from the Foreign Investment Promotion Board, Subbarao Amarthaluru told Reuters in an interview, adding it would be difficult to set a timeline for the deal closure.
There would be no immediate equity dilution due to the investment as it would be in the form of compulsorily convertible structured product that will be convertible when the unit goes public, he added.
Last month, Bangalore-based GMR said Macquarie SBI Infrastructure Investments had invested $200 million in its unit, GMR Airports Holding Ltd, which runs the Delhi and Hyderabad airports.
With these private equity investments, Bangalore-based GMR's cash position is likely to touch $1 billion, he said.
Amarthaluru said an initial public offer for its energy unit, GMR Energy, was likely only by end of the current fiscal year to March 2012 or the beginning of the next fiscal year.
"There has to be conducive market conditions," he said. "And as of now we have money, also. There is no point in raising money much ahead of your requirements."
Last year, the company raised $300 million through a private equity sale in GMR Energy.
Earlier on Tuesday, GMR said it had completed the sale of its 50-percent stake in US-based utility InterGen NV to a consortium led by China Huaneng Group for $1.23 billion. The company said $1 billion of this would be used to cut debt.
The company bought the stake for $1.1 billion in 2008.
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