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A file photo of Madhu Terdal. Photo: Aniruddha Chowdhury/Mint
A file photo of Madhu Terdal. Photo: Aniruddha Chowdhury/Mint

Leader in the Spotlight: Madhu Terdal

Terdal will need to reduce debt further and also manage two share sales to the public for the first time

Who: Madhu Terdal, chief financial officer, GMR Group.

Why: Terdal struck a 1,000 crore deal with KKR and Co. The American private equity firm will make the investment through a long-term structured financing arrangement with GMR Holdings Pvt. Ltd, the promoters of GMR Infrastructure Ltd that has a consolidated debt of nearly 40,000 crore.

Background: GMR Group was trying to strengthen its balance sheet by selling shares in at least two group companies and by disposing some of its assets. In July, its flagship company GMR Infrastructure tested the equity market, raising $350 million by offloading shares to financial institutions. Terdal struck a deal with KKR ahead of a proposed rights issue of 1,500 crore, to cut high-cost debt. KKR will invest 1,000 crore in GMR Holdings. In turn, the company will subscribe to 1,000 crore worth of rights issue of GMR Infrastructure. The KKR deal is a mix of debt and equity. KKR and GMR did not disclose the details of the financing arrangement. The rights issue is expected to improve the debt-to-equity ratio of GMR Infrastructure and save about 150 crore in interest cost.

Experience: Terdal brings a wealth of experience in the areas of strategic finance, urban infrastructure and international operations.

Challenge: He needs to reduce debt further. Besides, the group has to manage two initial public offerings—in GMR Energy Ltd and GMR Airports Ltd.By P.R. Sanjai

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