BackGVK considering options to raise funds for its airport unit
GVK Airport Developers says it is exploring various options, over a period, to raise funds either through PE investors or an IPO to reduce its debt burden
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Mumbai: GVK Airport Developers Ltd, a wholly-owned subsidiary of GVK Power and Infrastructure Ltd, is exploring various options, over a period, to raise funds either through private equity (PE) investors or an initial public offer (IPO) to reduce its debt burden.
In a filing to BSE on Wednesday, GVK Infrastructure said it has been exploring various options to reduce debt and had informed stock exchanges about the matter in March and August.
Hyderabad-based GVK Infrastructure’s move follows a report in the Times of India on Wednesday suggesting GVK Airport Developers has shortlisted five bidders to sell up to 49% of equity for raising ₹ 4,000 crore.
The bidders, including German airport operator AviAlliance GmbH, are likely to submit binding offers by January-end, the newspaper reported, quoting people directly familiar with the matter.
GVK Airport has mandated Bank of America Merrill Lynch and Goldman Sachs for the private placement of shares, the report said.
In August, GVK Power said it is in the process of knocking off debt to the tune of ₹ 4,000 crore by the end of this fiscal year. The company had said it is exploring various options—ranging from private placement to an IPO.
GVK has a total debt of ₹ 25,600 crore at a consolidated level. In the quarter ended 30 June, the company’s interest costs rose 28% to ₹ 410.9 crore.
The company said its main focus would be retiring debt raised for acquisition of Mumbai and Bangalore airports.
GVK’s airport division has a debt of ₹ 3,500 crore, the company said.
GVK has been considering a public issue of its airport business that includes Mumbai International Airport Ltd, Bangalore International Airport Ltd and Bali airport in Indonesia, to retire a portion of the debt.
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