GMR, in consortium with Malaysian Airports (20%) and Turkish conglomerate Limak, had won the mandate to build the ISG in 2007 and operate it for 22 years. The total project cost was ~euro 450 million with a debt/equity of ~3:1. The company had taken over operations of the airport from May 2008. Construction of a new terminal had been completed in a record period of 18 months, 12 months ahead of schedule.
Passenger growth at ISG had been robust over the years. The airport, with capacity to handle 25 million passengers, handled 15.3 million passengers in FY13, up 11% y-o-y. We revise our target price to R30 per share to factor in the higher-than-expected asset monetisation value.