GMR Group to encash airport business stake for power projects
06 May 2011
Mumbai: Bangalore-based GMR Group is looking to consolidate its airport business and will transfer portions of its stake in the Delhi International Airport Ltd and Hyderabad Airport to a subsidiary being set up for this purpose.
According to reports, the GMR parent company will sell 24% stake in Delhi International Airport Limited (DIAL) for Rs660 crore and 63% stake in the Hyderabad Airport for Rs240 crore to the airport holding company.
GMR holds 54% stake in DIAL.
The amount of Rs900 crore that GMR expects to collect will be utilised for power projects.
GMR Infra is aggressively pursuing power and road projects in India and has lined up investments of over Rs16,000 crore this year. It is developing power projects with 2,000 Mw capacities in the states of Orissa and Chhattisgarh and another 1,200 Mw of hydropower projects in Uttarakhand, Himachal Pradesh, Arunachal Pradesh, and Nepal.
GMR Airport Holdings operates two airports in India – at New Delhi and Hyderabad - and one in Turkey, the Sabiha Gokcen International Airport, Istanbul.
The airport arm accounts for as much as 46 per cent of GMR Infra's revenues.