GMR Airports, Jet Air plans cleared by FIPB

New Delhi: The Foreign Investment Promotion Board (FIPB) is understood to have given its nod to foreign investment proposals of GMR Airports ($200 million or Rs 960 crore), and Jet Airways ($400 million or Rs 1,920 crore), among others last week. This will pave way for Jet Airways to not only fund its expansion but also help to reduce debt burden which is estimated to be around Rs 15,000 crore. The move will also help GMR Airport Holdings fund its expansion plans.
The FIPB nod to various foreign investment proposals last week will cross Rs 3,000 crore, the highest to be cleared by the nodal agency dealing with the matters relating to foreign direct investment in India, in the current calender year, as reported by FE earlier. So far, the largest investments approved by FIPB on a single day was for Rs 2,727.41 crore in September.
GMR Airport Holdings Bangalore, the wholly owned subsidiary of GMR Infrastructure, will now be able to raise around Rs 960 crore from Mauritius-based private equity firm Macquarie SBI Infrastructure Investments by offloading 39.05% stake by way of compulsorily convertible preference shares. As a result of the foreign investment transactions, GMR Airports Holdings will be valued at about Rs 2,400 crore.
10/11/10 Ashish Sinha/Financial Express

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Categories: Airports Nov 2010, Jet Airways Nov 2010