Macquarie-SBI may invest Rs 466 cr in GMR airports division

Mumbai: After raising money for its power division from a clutch of PE investors like Temasek, IDFC PE, UTI Ventures and Arganaut, GMR Infrastructure is looking at raising funds for its airports division.
Macquarie-SBI was in advanced negotiations with GMR Infra to invest $100 million (Rs 466 crore) in the latter’s airports division, investment banking sources told Business Standard. GMR’s airport portfolio includes Delhi International Airport (P) Ltd (DIAL), GMR Hyderabad International Airport Ltd (GHIAL) and Sabiha Gokcen Airport Ltd in Istanbul, Turkey. GMR has also bid for an airport project in the Maldives.
The total valuation of this division has been pegged at around Rs 13,000 crore. The transaction is expected to close within a month.
GMR CFO A Subba Rao termed the development as speculation and refused to comment. An e-mail sent to Macquarie elicited no response.
It is still not clear if the investment would be similar to the power one, in terms of capital getting converted during the time of an IPO, with a guaranteed internal rate of return (IRR) of 18-25 per cent.
02/06/10 Katya Naidu/Business Standard

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Categories: Airports Jun 2010