GMR plans to raise Rs 250 cr for expansion

Hyderabad: The board of GMR Industries Ltd has approved plans to raise Rs 250 crore through a rights issue, at its meeting held here on Wednesday.

Expansion plans:

Part of the proceeds would be utilised to fund its expansion plans.

The board also approved the proposal to set up a medium density fibre board project and another sugar complex in Karnataka.

“We are discussing the issue with merchant bankers. Now that we have received the board approval, we hope to complete the process in the next two months,” Mr R. Ramakrishnan, Joint Managing Director, f GMR Industries, told Business Line.

Integrated plants

GMR Industries Ltd, the agri-business arm of the GMR group, runs a 5,000 tcd (tonnes crushed per day) fully integrated plant at Sankili in Andhra Pradesh. It is developing another integrated sugar complex with 3,500 tcd capacity in Haliyal (Karnataka).

Also, it took on long lease a cooperative sugar plant with a 2,500 tcd capacity in Belgaum (Karnataka).

Operations

Both these plants are expected to commence operations during the crushing season of 2008-09, a GMR press release said.