GMR Airports shares jump 3% on plans to acquire 10% stake in Delhi Airport

Shares of GMR Airports Infrastructure (GIL) rose 3% in Tuesday’s session to its day’s high of Rs 93.31 on BSE after the company informed that it is set to acquire an additional 10% equity stake in Delhi International Airport (DIAL) for about $126 million.

The seller of the stake in the transaction will be Fraport AG Frankfurt Airport Services Worldwide. GMR owns an existing 64% stake in DIAL and this acquisition will increase its stake to 74% while the Airports Authority of India (AAI) continues to hold a 26% equity stake.

“GMR Airports Infrastructure Limited, has entered into a Share Purchase Agreement with Fraport AG Frankfurt Airport Services Worldwide, towards acquisition by GIL from Fraport, of their current minority 10% equity stake in Delhi International Airport Limited, a subsidiary of the Company. The said acquisition would be for a negotiated aggregate consideration of USD 126 million,” said the company in a filing to the exchanges.


After the transaction is completed, Fraport's role as the airport operator of DIAL will remain governed by the Airport Operator Agreement and any other related agreements.

The transaction is expected to be completed within 180 days from the date of execution of the SPA, adding the company filing to the exchanges.

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“The acquisition of additional stake in DIAL is in line with our objective of consolidating our presence in core assets of the Group and signifies the importance of Delhi airport in the overall Group portfolio,” said Kiran Kumar Grandhi, Corporate Chairman of GMR Group.

Since Fraport owns 10% of DIAL, it is considered a "related party" to DIAL. Under SEBI regulations, this makes the proposed transaction a "related party transaction" for GIL, meaning it must follow certain rules. DIAL is currently a subsidiary of GIL.

Shares of GMR were trading 1.2% higher at Rs 92.03 around 12:45 pm on BSE.

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