GMR Group will work towards expanding its footprint in the airport business in the long term, said G.M. Rao, Chairman of the group. His message to the shareholders in the annual report of GMR Infrastructure said that the company will also continue to invest in technology.
"From a long-term perspective, the Group will continue to invest in technology and work towards further expanding our footprint in the Airport business. We will ensure that the Group is ready for a strong economic comeback post the pandemic," Rao said.
He noted that the aviation industry across the globe is facing an unprecedented situation with a very significant adverse impact due to the Covid-19 outbreak.
Not only has air travel been restricted due to government initiated lockdowns to curb the spread of Covid-19, the general passenger sentiment has also been adversely impacted, Rao said, adding that larger countries such as India, however, are expected to recover faster because of a strong domestic market.
"In line with our strategy, we believe that in spite of the ongoing turbulence, the airport business has huge underlying strength and will continue to be the growth engine for the group," he said.
Noting that the fundamental long-term growth drivers for the Indian economy and aviation sector remain intact and strong, he said: "We are actively pursuing suitable airport opportunities in India as well as globally.”
GMR’s group company GMR Infrastructure too is looking to raise funds and will seek its shareholders' approval to raise up to Rs 5,000 crore through securities, in its annual general meeting on September 21.
In a regulatory filing on Sunday, the company said that it plans to raise the funds in one or more tranches.
"Pursuant to the Regulation 29(1)(d) of SEBI LODR, the approval of the shareholders is being sought for raising of funds up to Rs 5,000 crore in one or more tranche(s), through issue of securities as per the requirements of applicable laws, as an enabling resolution," it said.
The company had on Thursday announced a composite 'scheme of arrangement' involving a vertical split and demerger of the 'non-airport business'.
The Board of GMR Infrastructure announced the scheme together with other group companies -- GMR Power Infra and GMR Power and Urban Infra.