A consortium of Tata Group and an arm of Singapore’s wealth fund GIC and Hong Kong-based SSG Capital Management will invest Rs 8,000 crore to buy a significant stake in GMR Airports Ltd.
GMR operates Delhi International Airport Ltd (DIAL), India’s largest airport and Asia’s sixth biggest.
The deal will result in Rs 1,000 crore being pumped into GMR Airports, a unit of GMR Infrastructure Ltd., alongside the purchase of Rs 7,000 crore of the airport unit’s equity shares from the parent, according to a statement.
After the deal, Tata will hold 20 per cent in the airport unit, while GIC will get 15 per cent stake and SSG another 10 per cent, the company said in a filing. The deal values GMR Airports at Rs 18,000 crore.
Explained: What does Tata investment in GMR signify?
The deal marks the Tata Group’s entry into the airports business. The entry of the Tatas, which owns two airlines, comes close on the heels of the Adani Group’s entry into the sector after it won bids to operate six airports last month.
Debt-strapped GMR Infrastructure has been selling assets to pay off liabilities. GMR also operates airports in Hyderabad, while it is developing greenfield airports in Goa and Crete in Greece.
For an airline operator, the entry into the airports business could have implications in terms of broader market influence.