GVK Group has raised over ₹7,600 crore from investors to pare debt and fund the purchase of additional shares in Mumbai International Airport (MIAL) by GVK Airport Holdings (GVKAHL).
GVKAHL is engaged in the business of developing, operating and managing the Chhatrapati Shivaji Maharaj International Airport (CSMIA) and the development of Navi Mumbai International Airport (NMIAL).
As per an official release by the company, ” GVK Power and Infrastructure (GVKPIL) today announced that its subsidiaries, GVK Airport Developers (GVKADL) and GVK Airport Holdings Limited have entered into definitive agreements with subsidiaries of the Abu Dhabi Investment Authority (ADIA), Public Sector Pension Investment Board (PSP Investments) supported by its global airports platform, AviAlliance, and with National Investment and Infrastructure Fund (NIIF), whereby the investors will make an aggregate investment of ₹7,614 crore, into GVKAHL.”
Therefore, upon completion of the transaction, GVKAHL will have four shareholders – GVKADL, ADIA, PSP Investments and NIIF.
This transaction will primarily majorly benefit MIAL and NMIAL, as they will have backing of global infrastructure investors in their next growth phase.
Expressing views on this, GVK Reddy, founder and chairman, GVK, said, We will now accelerate our efforts for developing the Navi Mumbai International Airport, monetising MIAL’s real estate assets and building an even stronger airports business. This transaction validates the Government of India’s efforts to attract global investors into the country.”
Namrata Bhandari
