Many Indian businessmen are successfully leading their companies. They continue to expand their businesses through investments in different firms and acquisitions. They also get loans and investments from other companies to expand their businesses. One such person is Grandhi Mallikarjuna Rao or GM Rao. He is the founder and chairman of GMR Group, a global infrastructure developer and operator based in India. He is an Indian billionaire with a net worth of Rs 28587 crore, as per Forbes.
One of his companies, GMR Airports Ltd, operates three airports in India -- Delhi, Hyderabad and Goa -- and two airports in the Philippines and Indonesia. The market cap of the company is Rs 86805 crore. Now, his GMR Group has secured Rs 6,300 crore debt funding from the Abu Dhabi Investment Authority (ADIA), the UAE's largest sovereign wealth fund.
The proceeds will be used for refinancing the debt of its promoter group entity GMR Enterprises Pvt Ltd (GEPL), the promoter of GMR Airports Ltd (GAL). In a release, GMR Group said it has executed an agreement with a wholly-owned subsidiary of ADIA for Rs 6,300 crore investment in the structured debt instruments of GEPL. The transaction is subject to compliance with certain conditions and regulatory approvals.
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"Upon completion, GMR Group will use the proceeds of the transaction to refinance all external debt of GEPL, the promoter of GMR Airports Ltd. Also, upon the completion, the GMR promoter group's pledge on its shareholding in GAL will reduce significantly," the release said.
(With inputs from PTI)
