GVK's airport subsidiary plans to raise Rs 1,500 cr via IPO this year: sources

NEW DELHI: GVK Airport, arm of Hyderabad-based diversified infrastructure group GVK, is planning to raise Rs 1,200 - 1,500 crore via an IPO, ET Now reported, citing sources. The company is planning to file a draft red herring prospectus (DRHP) with SEBI by September, sources added.

It plans to dilute 25% stake through the IPO route.

According to media reports, in January the company ruled out taking the airport arm public as stake dilution to other investors was their priority. Currently the company’s business is valued at Rs 6,000 crore and has debt of Rs 2,500 crore.

ET in February had reported that a group of investors, led by IDFC Private Equity, was in initial talks with the Reddys of the GVK Group to buy a significant minority stake in its airports business for $400 million (Rs 2,500 crore).

Other PE and sovereign wealth funds have also shown interest in GVK’s airports holding company, while Malaysian Airport Holdings Bhd was keen on buying a stake in the Bangalore airport, the ET report added.

Last year, the company had plans to sell a part of its stake in the profitable Bangalore Airport to wealth funds to raise money.

The company operates Mumbai and Bangalore airports.