GMR Airports, a subsidiary of the erstwhile GMR Infra and the National Investment and Infrastructure Fund (NIIF) have announced a financial partnership, under which the NIIF will invest in the equity capital of three airport projects of GMR. This partnership marks NIIF's first investment in an airport asset in India.
Among the three airports include greenfield international airports at Mopa in Goa and Bhogapuram in Andhra Pradesh.
As per the transaction, NIIF will make a primary investment of Rs 631 crore in the form of Compulsory Convertible Debentures (CCD) in GMR Goa International Airport Ltd. (GGIAL), an SPV, to run and operate the new Goa airport.
The transaction is subject to customary completion conditions and necessary approvals.
This will mark NIIF's first investment in an airport asset in India and its first direct investment in the state of Goa.
Goa's Mopa airport will be the first dual-airport system in India alongside the Dabolim airport once it is commissioned. Its initial capacity would be to handle 4.4 million passengers per annum with an ultimate capacity of 40 million passengers per annum.
NIIF's investment also comes after Civil Aviation Minister Jyotiraditya Scindia told the Economic Times on Tuesday that India remains the fastest-growing aviation market in the world. The minister also said that the country's air passenger number will touch 400 million per year in the next five years and that the government is looking to lease out 11 more airports.
The investment in the Mopa airport will be the NIIF Master Fund's sixth investment.
GMR Airports is the largest private airport operator in Asia and the second largest in the world with an annual passenger handling capacity of 189 million. The group is currently developing three major greenfield airports across India and Greece.
Shares of GMR Airports have opened 1.5 percent lower at Rs 42.70.
First Published: Dec 7, 2022 9:21 AM IST
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