Tata forays into airport business through indirect stakes in GMR

By Nikita Chaurasia  Date: 2019-03-29

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     aeresearch.net

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

Netflix confirms producing fictionalized version of Spotify’s ascension

Netflix confirms producing fictionalized version of Spotify’s ascension

By Nikita Chaurasia

Over-the-top content streaming & production giant Netflix Inc. is reportedly working on an untitled series that tells the story of one of the most successful music streaming companies, Spotify Ltd. The six-part series, already listed on Netflix,...

Edtech Byju’s is now India’s highest-valued startup at USD 16.5 billion

Edtech Byju’s is now India’s highest-valued startup at USD 16.5 billion

By Nikita Chaurasia

Byju’s, the largest education technology company, has emerged as India’s highest-valued startup after a USD 340 million funding round involving investors such as UBS Group, Blackstone, and Zoom founder Eric Yuan among others. Recently, B...

LiDAR maker Hesai Photonics secures USD 300 million in Series D funding

LiDAR maker Hesai Photonics secures USD 300 million in Series D funding

By Nikita Chaurasia

Hesai Photonics Technology Co. Ltd., a leading Shanghai-based LiDAR company, has reportedly secured USD 300 million in a Series D funding round which was led by GL Ventures LLC, Xiaomi Corporation, Hillhouse Capital Group, Meituan, and CPE. The roun...

Tesla terminates production of its Model S Plaid + variant indefinitely

Tesla terminates production of its Model S Plaid + variant indefinitely

By Nikita Chaurasia

CEO Elon Musk justified Model S Plaid as good enough against its successor. The Model S Plaid + was touted to be Tesla’s flagship vehicle, with a range of around 519 miles. After unveiling for the first time last year, American EV maker T...

ByHeart concludes largest U.S. clinical trial for infant food product

ByHeart concludes largest U.S. clinical trial for infant food product

By Nikita Chaurasia

ByHeart Inc., a New-York based infant, and baby nutrition company, has recently announced the completion of the largest clinical trial for new infant formula in the past 25 years. With this move, the company is earmarked to be the 4th FDA registered,...