GMR Airports Limited has incorporated GMR Aero Realty Limited (GARL) as a wholly owned subsidiary to pursue real estate and land development opportunities, the company said in an exchange filing on Wednesday.
The new company, incorporated on October 13, has an initial subscribed and paid-up share capital of ₹1 crore, comprising 1 million equity shares of ₹10 each.
GMR Airports said it had subscribed to the memorandum of association of GARL and would remit the subscription amount within the applicable statutory timelines.
GMR Aero Realty yet to commence business operations
The subsidiary will engage in real estate, land development and other related business opportunities that may arise from time to time, the company said. GARL is yet to commence business operations.
The company clarified that its subscription to GARL's memorandum of association does not constitute a related-party transaction.
It also said that its promoters, promoter group and group companies have no interest in the transaction beyond their direct or indirect shareholding.
No government or regulatory approvals were required for the subscription, the filing added.