Investment management company GQG Partners has picked up a 4.68% stake in India’s largest airport operator GMR Airports Infrastructure through a block deal. It bought 282.8 million shares worth Rs 1,672 crore via two company-controlled funds— Goldman Sachs GQG Partners International Opportunities Fund and GQG Partners Emerging Markets Equity Fund, BSE data showed.
The deal pushed the shares of GMR Airports Infrastructure to nearly 14% on Friday to hit the highest level in over 14 years. The stock closed at Rs 68.89 or 11.73% higher against Thursday’s closing price.
A total of four existing investors of GMR Airports Infrastructure sold 709.9 million shares of the company or 11.76% equity stake for Rs 4,136 crore. Nomura India Investment Fund and Stichting Depositary Apg Emerging Markets Equity Pool were the other buyers besides GQG.
The US-based firm is also an investor in various group companies controlled by the Adani group, which has interest in the airport operating space through Adani Airport Holdings (AAHL). It is India’s second largest airport operator and is housed under Adani Enterprises. As of September 2023, GQG owns 2.74% of Adani Enterprises, according to stock exchange data.
Currently, GMR controls one of the world’s busiest airports, Delhi International Airport. It also operates Hyderabad International Airport and the new international airport at Mopa, Goa.
AAHL has a greater number of airports under its belt with the prime one being Mumbai International Airport. It has airports at Ahmedabad, Lucknow, Mangaluru, Jaipur, Guwahati and Thiruvananthapuram. The company is also developing the greenfield airport of Navi Mumbai. AAHL will see a capital expenditure (capex) of Rs 11,000 crore this year, which is more than double the capex it did last year.
The airport business unit is one of the highest revenue generators for Adani Enterprises’ incubating businesses. It saw a 42% increase in revenues during the six months ended September at Rs 3,657 crore.
GMR Airports Infrastructure capitalized about Rs 6,500 crore in the Delhi International Airport till September. The total asset capitalization will be around Rs 11,500 crore, GMR clarified. The Delhi airport saw the inauguration of the fourth runway and an elevated cross taxiway during the year. In case of GMR’s Hyderabad airport, more than `3,800 crore has been capitalized. It expects to capitalize a full amount of Rs 6,800 crore by January 2024 for the Hyderabad airport.