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GMR Airports, NIIF announce partnership to invest in three airports

  • capital market |
  • 07 Dec, 2022 |
  • 8:45 AM
GMR Airports (GAL), the airport business holding entity and a subsidiary of GMR Airports Infrastructure (formerly known as GMR Infrastructure) and NIIF (National Investment and Infrastructure Fund) announced a financial partnership for NIIF to invest in the equity capital of three airport projects. These include the greenfield international airports at Mopa, Goa and Bhogapuram, Andhra Pradesh. The transaction envisages NIIF making a primary investment of Rs 631 crore in the form of Compulsory Convertible Debenture (CCD) in GMR Goa International Airport (GGIAL), a special purpose vehicle to run and operate the New Goa Airport. The transaction is subject to customary completion conditions & necessary approvals. This investment shall be NIIFs first investment in an airport asset in the country and its first direct investment in the state of Goa. GGIAL, in 2016, was awarded the concession to develop and operate a second airport in Goa on a Design-Build-Finance-Operate-and-Transfer (DBFOT) basis. Mopa airport is a greenfield airport PPP concession awarded by a state government. The airport has already received aerodrome license and upon commissioning, shall form part of the first dual-airport system in India alongside Dabolim airport. In the first phase, Mopa International Airport shall have a design capacity of handling up to 4.4 million passengers per annum, with an ultimate capacity of up to 40 million passengers per annum. GBS Raju, business chairman - Airports, GMR Group, said: It is a proud moment for GMR Group having developed Mopa Airport. Goa is the prime holiday destination in India and visited by travellers from across the world. We are confident that Mopa Airport will be a marquee airport in the country and shall add to the pride and economic development of the state. The Airports has been designed to capture the vibrancy and the essence of Goan culture. Our partnership with NIIF which will also extend to two more airports is a further testament of GMRs credibility as an Airport Infrastructure developer and the future of the Aviation industry in the country. Vinod Giri, managing partner - Master Fund, NIIF, said: NIIF believes that Mopa international airport will boost air connectivity to the state and provide strong tailwinds to the tourism linked economy of Goa. NIIFs Master Fund is Indias largest infrastructure fund and has built a robust and well-diversified portfolio across ports & logistics, renewables, smart meters, roads and digital infrastructure. NIIFs investment in Mopa airport shall be the Master Funds sixth investment and is a testament to our commitment to partner alongside reputed infrastructure developers, state governments and key stakeholders to fast-track the execution of the Government of Indias ambitious National Infrastructure Pipeline. In line with the fund strategy, this investment complements the existing portfolio and is a first step for NIIF to expand its presence in the airport sector. GMR Airports is the largest private airport operator in Asia and 2nd largest in the world with a passenger handling capacity of over 189 million annually. GMR Airports, a subsidiary of GMR Airports Infrastructure [formerly known as GMR Infrastructure] (GIL) has Groupe ADP as its strategic partner, which is holding a 49% stake. GMR Airports operates the Delhi Airport, which is the largest and fastest-growing airport in India. It also runs Hyderabad Airport. The company is also operating the renowned Mactan Cebu International Airport in Cebu, Philippines, in partnership with Megawide. Expanding its overseas footprint, GMR Airports, in collaboration with Angkasa Pura II (AP II), has recently bagged the development and operation rights of Kualanamu International Airport in Medan, Indonesia. On a consolidated basis, GMR Airports Infrastructures net revenue increased by 17% year-on-year to Rs 1,126 crore in Q2FY23. It reported a net loss of Rs 195 crore in Q2FY23 as against net loss of Rs 113 crore in Q1FY23 and net loss of Rs 502 crore in Q2FY22. Shares of GMR Airports Infrastructure ended flat at Rs 43.35 on Tuesday, 6 December 2022. Powered by Capital Market - Live News

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