Image:GMR Hyderabad International Airport Ltd.
NEW DELHI, April 18 (Economic Times): India's largest airport developer GMR Airports, which owns Delhi, Hyderabad, and Sabiha Gokcen International Airport in Istanbul, will sell shares in a public offer this financial year to raise roughly Rs 20 billion for expansion and to help a clutch of private equity investors to sell shares in the company, two people familiar with the development said.
"The listing is primarily aimed at providing exit route to the investors as the company does not have immediate fund requirement," one of the two persons said. GMR Airports is making operating profit and even on net profit level it has achieved breakeven in the third quarter. It has Rs 40 billion debt.
"We are evaluating options of a potential initial public offering (IPO) in GMR Airports and the issue size and details will be worked out later. One of the objectives is to provide an exit to PE investors." the spokesperson said in a email response.
The issue will be a combination of fresh issue and secondary sale of shares by the existing private equity investors. "The company has not yet frozen the size of fresh issue of shares as it does not know how much these PE firms, who together own about 21 per cent stake in the company, will sell in the issue," said the first person.
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