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GVK may file DRHP for airports vertical IPO next month

HYDERABAD: GVK Group which operates Mumbai international air..

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 group.

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