GVK Power & Infrastructure Ltd is in talks with investors to sell a stake of up to 26 per cent in its airport subsidiary to raise as much as Rs 3,000 crore after becoming the largest stakeholder in the Mumbai and Bangalore airports. “We have term sheets from four private equity players and the due diligence is on. It would take a month or so,” said Isaac George, Chief Financial Officer of GVK Power & Infrastructure, without specifying the names of the investors he described as “serious contenders” for buying the stake. “We would prefer a 25-26 per cent dilution though that is not in our hands.”
According to a report by Tarun Shukla in Mint, the extent of dilution in GVK Airport Developers Ltd will depend on the valuation and negotiations with investors, George said. He hopes to raise Rs 2,500-3,000 crore in return for selling a 25-26 per cent stake. By that estimate, GVK’s airport business will be valued at Rs 10,000-12,000 crore.
On Wednesday, GVK Power and Infrastructure increased its stake in Bangalore International Airport Ltd to 43 per cent from 29 per cent by buying 53.8 million equity shares from Siemens Project Ventures GmbH for Rs 613.82 crore.
The infrastructure firm had a day earlier acquired a majority stake (50.5 per cent) in Mumbai International Airport Ltd by buying a 13.5 per cent stake from Bid Services Division (Mauritius) Ltd for USD 231 million (Rs 1,147.9 crore).