INSUBCONTINENT EXCLUSIVE:
HYDERABAD: GVK Group which operates Mumbai international airport, may file a Draft Red Herring Prospectus with market regulator SEBI for an
IPO of it's airports vertical, a senior executive of the infra major said.
IssacGeorge, CFO of GVK, also said the State Bank of India has
given an initial term sheet on the financial closure of the Navi Mumbai Airport project that the company has been awarded and a clear
picture on the finances would emerge in a couple of months.
"DRHP for (airports vertical),we are hoping,will be filed in July
Quantum of the amount to be raised has not yet been decided
But it (Initial Public Offering) is purely to retire the debt
We do not want to take anything home
Because this is going to be fresh issue of shares, everybody will have to proportionally sell," he told PTI.
GVK currently manages Mumbai
International Airport through its subsidiary GVK Airport Developers Ltd.
The GVK-led consortium has 74 per cent and Airports Authority of
india has the remaining stake in MIAL.
The city-based group last year exited from Bangalore International Airport by selling its stake to
Fairfax India Holding.
The company made Rs 872 crore profit from the stake sale.
George said the debt as of now on the airport segment is Rs
8,000 crore.
As per the Q4 results statement, the airport segment of GVKPIL generated Rs 2,434 crore revenues last year with Rs 594 crore
profit.
"The total debt on the airport vertical is Rs 8000 crore
Debt on power vertical is Rs 11,000 crore
The consolidated debt is Rs 23,400 crore," he added.
The Infrastructure major bagged the financial bid to build and operate the second
international airport in the Mumbai metropolitan region- Navi Mumbai- at an investment of Rs 16,000 crore this year, beating rival GMR
