Friday, September 11, 2020

Adani Gets New Wings

From a relative newbie to the second largest airport operator in India, Gautam Adani has touched new heights. He did this in less than 24 months after achieving a double hat trick by winning concession agreements for six airports Jaipur, Guwahati, Ahmedabad, Mangaluru, Lucknow and Thiruvananthapuram. Subsequently, he managed to acquire Mumbai International Airport Limited (MIAL) too. Collectively, these seven airports handled close to 80 million passengers in 2019-2020, which is approximately a quarter of India’s total traffic of 341 million.

On August 31, Adani said that Adani Airport Holdings will procure an impressive interest in MIAL and also take on the debt of GVK Airport Developers. As per the declaration by Adani Enterprises in the Bombay Stock Exchange, the group will implement measures to complete the procurement of 23.5 percent equity stake from Bidvest and Airports Company of South Africa in MIAL for which it has taken the permission of the Competition Commission of India.

The Adani group will eventually own 74 percent stake in MIAL and around 55 percent in the Navi Mumbai Airport project. At MIAL, GVK Airport Developers holds 50.5 percent share and Bidvest and Airports Company of South Africa possess 13.5 percent and 10 percent share, respectively. The leftover 26 percent is with the Airports Authority of India (AAI).

Nevertheless, the GMR group is the biggest airport operator in India. But it now faces an intimidating struggle due to Adani’s rapid rise. The southern-based GMR group operates Delhi and Hyderabad airports, which together handled around 89 million passengers in 2019-2020.
10/09/20 Shivanand Pandit/India Legal Live
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