The announcement was made before trading hours today, 27 March 2019.

Meanwhile, the S&P BSE Sensex was up 151.86 points, or 0.40% to 38,385.27.

On the BSE, 27.52 lakh shares were traded in the counter so far compared with average daily volumes of 23.06 lakh shares in the past two weeks. The stock had hit a high of Rs 21.25 and a low of Rs 19.45 so far during the day. The stock hit a 52-week high of Rs 21.50 on 3 September 2018. The stock hit a 52-week low of Rs 13.45 on 5 February 2019.

GMR Infrastructure (GIL) announced a proposed investment by Tata Group Tata, an affiliate of GIC, Singapore's sovereign wealth fund GIC and SSG Capital Management SSG (investors) in its airports business.

GIL has signed a binding term sheet with the investors pursuant to which the investors have agreed to invest Rs 8,000 crore in GMR Airports (GAL). The investment amount of Rs 8,000 crore will consist of Rs 1,000 crore equity infusion in GAL; and Rs 7,000 crore towards purchase of GAL's equity shares from GIL and its subsidiaries.

The proposed investment is subject to definitive documentation, customary regulatory approvals, lender consents and other approvals. Following the investment, GIL proposes to demerge its energy, highways, urban infrastructure & transportation businesses, leading to separation of its airport business, subject to customary consents, regulatory & corporate approvals.

As part of the terms of the proposed investment, GIL will retain management control over the airports business with the investors having customary rights and board representation at GAL and its key subsidiaries.

The investors have pegged 100% equity valuation for GAL at post money valuation of Rs 18,000 crore. Plus, earn-outs of up to Rs 4,475 crore linked to achievement of certain agreed milestones and performance metrics over next 5 years. Thereby, total valuation assuming all earn-outs are successfully consummated, will be Rs 22,475 crore on post money basis.

On a consolidated basis, GMR Infrastructure reported net loss of Rs 561.04 crore in Q3 December 2018 as against net loss of Rs 578.40 crore in Q3 December 2017. Net sales declined 6.57% to Rs 1850 crore in Q3 December 2018 over Q3 December 2017.

GMR Infrastructure is a leading global infrastructure conglomerate with interests in airport, energy, transportation and urban infrastructure.