MONEYBEE SECURITIES PVT. LTD. ~ RESEARCH REPORT ~ GMR INFRASTRUCTURE LTD
NEYBEE June 2008
KNOW VENTURE KNOW GAIN
HIGHLIGHTS OF GMR INFRASTRUCTURE LTD.
GMR Infrastructure Ltd. (GMR) is a pure infrastructuredeveloper engaged in development of projects across theairport, power, road & real estate sectors through SPVs.
GMR has an edge over its competitor’s in profitable domainssuch as airports and a veteran team to execute a project fromnotion through commissioning. GMR has appended one moreairport to its kitty with the acquisition of Turkey's SabihaGokcen airport through a JV.
GMR Infrastructure has placed 165.23 mn shares at a price of Rs. 240 to QIB’s. It will raise Rs. 39.66 bn & equity base willexpand by 9.08% post dilution. The funds raised from thisissue would be utilized for capital expenditure of its variousprojects.
GMR’s vanguard projects include airport construction atDelhi, Hyderabad and at Istanbul, Turkey. India is thrustingmore emphasis on infrastructure & is likely to auction 35 non-metro airports. Apart from that many eastern-Europeanairports are lined up for bidding.
GMR has successfully couped a 3300 acre SEZ and is close towinning many hydro projects in Nepal. Potential wealthcreation coupled with worldwide business outlook will act ascatalyst for GMR’s development.
Capacity addition in power generation i.e. 2.4GW by FY12E v/s0.8GW in FY07 will allow GMR to capitalize on India’s forecastdemand-supply gap.
GMR is on hunt for expansion into toll road development asIndia aims to quadruple road capex (Rs. 1,720bn / US$44bn)over FY05-12E.
INDUSTRY: INFRASTRUSTURE COMPANY: GMR INFRASTRUCTURE LTD.
Registered Office:SKIP House25/1 Museum RoadBangalore- 560025KarnatakaWebsite:www.gmrgroup.in
Target Price :
BSE code : 532754Face Value : 2/-M.Cap (mn) : 21820452 week H/L : 269/97Eq. Share in mn : 1820B.V : 31EPS (TTM) : 2.5Price/ BV : 4.1Price/ EPS : 53Dividend Yield : 0.00% of SharesDematerialised : 99.85
Share Holding% as on Mar 08
PromotersFII, MF, InsuranceCorporate BodiesPublic