GMR Infrastructure Said to Consider Singapore IPO of Road Assets

GMR Infrastructure Ltd., operator of
India’s biggest airport in New Delhi, is considering selling
some of its toll road assets in an initial public offering in
Singapore, five people with knowledge of the matter said.

GMR may raise as much as $500 million by listing the assets
as a business trust, three of the people said, asking not to be
identified as the information is private. GMR has held talks
with banks including JPMorgan Chase Co., Nomura Holdings Inc.
and Standard Chartered Plc about the possible listing, the
people said.

The company hasn’t decided which of the road assets would
be included in the business trust, and no time frame for a sale
has been set, the people said. GMR is also considering seeking a
buyer for some of the assets, and would only decide on whether
to pursue a business trust once the sale is completed, according
to two of the people.

Selling toll roads could help GMR reduce debt that swelled
47 percent to 387 billion rupees ($7 billion) in the year
through September. GMR has 10 road assets, eight of which are
operational, according to a December press release. The company
also operates airports and power plants.

Arun Bhagat, a Bangalore-based spokesman for GMR, declined
to comment on any potential asset sales. GMR shares fell 1.8
percent to 19.45 rupees at 2 p.m. local time.

Hospitals Trust

At least five Indian companies are considering raising
money by listing assets in business trusts in Singapore, said
the people. They declined to identify the firms. Religare Health
Trust, backed by the assets of India’s second-biggest hospital
company, Fortis Healthcare Ltd., raised S$511 million ($413
million) in October. Shares of the trust are little changed from
the offer price.

GMR last month terminated an agreement with the National
Highways Authority of India to add lanes to a 555-kilometer
(345-mile) highway. After the Maldives took control of Male
international airport from GMR in December, following the
cancellation of a contract, the company and its lenders are owed
more than $700 million in compensation, GMR said.

Some Indian companies have turned to Singapore for
fundraising amid a stagnant IPO market at home. Infrastructure
Leasing Financial Services Ltd., whose shareholders include
Japan’s Orix Corp. and Abu Dhabi Investment Authority, is
planning a $250 million sale of its wind power unit in
Singapore, people with knowledge of the matter said in
September.

To contact the reporters on this story:
George Smith Alexander in Mumbai at
galexander11@bloomberg.net;
Joyce Koh in Singapore at
jkoh38@bloomberg.net

To contact the editor responsible for this story:
Philip Lagerkranser at
lagerkranser@bloomberg.net

GMR Infrastructure Said to Consider Singapore IPO of Road Assets