Shares of GMR Infra gained nearly 9 per cent in trade on Monday after the company said it has raised $300 million (around Rs 2,000 crore) from Kuwait Investment Authority through a 60-year foreign currency convertible bond.
The stock ended 4.85 per cent higher after hitting an intraday high of Rs 16.80, up 8.73 per cent on the Bombay Stock Exchange (BSE), but was still trading 20.65 per cent below its 52-week high of Rs 20.27, touched on February 02, 2015.
"The proceeds from the FCCB will be primarily used to repay certain outstanding obligations of GMR and its subsidiaries," said GMR Infra in a filing to BSE.
"This is the largest bilateral investment of Kuwait Investment Authority in India. This investment shows confidence of sovereign investors in the long term policies being implemented by the government, particularly in the infrastructure space," GMR Group Chairman GM Rao said.
GMR's FCCB issuance is the longest-tenor convertible issuance out of India and will have several 'equity-like' features such as long tenor, unsecured and subordinated status and mandatory conversion. Such features are generally seen in perpetual-type issuances, the release said.
Kuwait Investment Authority Executive Director Farouq Bastaki said, "We believe GMR is well positioned to play an important role in India, as the country aggressively expands its infrastructure footprint in the coming years. We look forward to participating in GMR's growth as a long term investor and build a deeper relationship."
Deutsche Equities India acted as the financial advisor to GMR and Citigroup Global Markets India was the financial advisor to Kuwait Investment Authority.