Tata forays into airport business through indirect stakes in GMR
Category: #business  By Nikita Chaurasia  Date: 2019-03-29
  • share
  • Twitter
  • Facebook
  • LinkedIn

Tata forays into airport business through indirect stakes in GMR

Infrastructural giant GMR group has reportedly announced that a consortium including Tata Group and two other firms will invest INR 8,000 crore toward its airport business. If reports are to be believed, Tata Group will own indirect stakes in 7 airports within India and abroad.

As per trusted sources, the total valuation of GMR's airport business is worth INR 22,475 crore, post the deal. The Tata group owns charters, airlines, and aviation catering business, however, its attempts to own and operate airports were ineffective until now, reported sources.

As per market speculations, the company was previously interested in Navi Mumbai airport and projects but didn’t submit any bids for them. Sources claim GMR had been in talks with Singapore’s GIC and SSG Capital Management to sell stakes in airports, with Tata pitching in two months ago.

Recently, GMR group said in a statement that it had inked a binding term-sheet with the three conglomerates to sell stake in its holding company for airports GMR Airports Limited. The deal reportedly comprises fresh worth INR 1,000 crore to new investors and secondary share sale worth INR 7,000 crore.

According to sources familiar with the deal, Tatas will hold 20 percent stake while SSG and GIC will own 10 percent and 15 percent, respectively. Meanwhile, GMR will retain management authority and new investors will become board members.

Post the share sale, the group plans to divide the airport vertical into a separately listed entity since this will help to attract more investors and attain better valuation.

Saurabh Chawla, Executive Director Finance and Strategy at GMR, said in a statement that this will produce two mirror entities with the same shareholding structure and will be fair toward the minority investors. 

Currently, GMR group holds a 54 percent stake, which can be increased to 62 percent in the next five years, which will value the company’s airports business at INR 22,475 crore, reported sources.

About Author

Nikita Chaurasia    

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Milacron partnership agreement with iMPLUX to revolutionize molding
Milacron partnership agreement with iMPLUX to revolutionize molding
By Nikita Chaurasia

Milacron Holdings Corp., a technology company known for its services to the plastics processing industry recently announced the signing of a proprietary partnership with iMFLUX, a wholly owned subsidiary of Proctor & Gamble. The distribution agre...

Percona unveils optimized version of database monitoring platform PMM2
Percona unveils optimized version of database monitoring platform PMM2
By Nikita Chaurasia

Percona, a leading provider of open source database software and services based in America, has recently unveiled Percona Monitoring and Management 2 (PMM2), an upgraded version of its award-winning database management platform at the 2019 Percona Li...

Tastewise raises $5 million in a funding round led by PeakBridge
Tastewise raises $5 million in a funding round led by PeakBridge
By Nikita Chaurasia

Tastewise to develop its food intelligence platform with the new funding. An intelligence startup Tastewise, that offers data, analytics and insights platform for food brands and restaurants, recently announced that it has collected USD $5 million i...