GMR Airports Infrastructure has announced the issuance of 3.3 lakh foreign currency convertible bonds (FCCBs) worth 330.8 million euros to Aeroports De Paris SA

The bonds are priced at 1,000 euros each, and when converted to Indian rupees, the value will be around ₹2,900 crore.

The FCCBs will bear an interest rate of 6.76 percent and have a tenure of 10 years and 1 day. They will be unlisted. The conversion price of the FCCBs will be ₹43.67 per share, including premium.

This issuance of FCCBs is a significant move for GMR Group as it paves the way for the merger of GMR Airports (GAL) with GMR Airports Infrastructure (GIL). As part of this merger, equity ratchets and cash earn-out ratchets at GAL level will be settled, ensuring additional equity allotment to GIL in GAL, and cash settlement to GIL.

Merger approval sought

GMR Airports Infrastructure has also sought approval for a detailed scheme of arrangement for the merger from the regulatory authorities. This move is expected to simplify the corporate structure of the GMR Group, increase operational efficiency, and improve investor confidence.

The conversion of the FCCBs will be based on the exchange rate prevailing two business days before the date of receipt of the subscription amount. The number of equity shares upon conversion will be determined based on this exchange rate.

Source link

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *