: GMR group is purchasing 10 per cent stake in Delhi International Airport Ltd (DIAL) from German airport operator Fraport AG for around ₹1058 crore ($ 126 million).
While GMR group is increasing its stake to 74 per cent, the share sale marks Fraport AG's exit from India after eighteen years of invesment. Airport Authority of India (AAI) holds the remaining 26 per cent stake in the company running India's busiest airport.
Fraport was among the original member of the GMR group consortium which bid for operations and management of Delhi airport in 2006. Fraport had invested₹245 crore for a 10 per cent stake and is it exiting at over 4x valuation.
Kiran Kumar Grandhi, corporate chairman of GMR Group said the acquisition of additional stake in DIAL is in line with the group objective of consolidating presence in core assets and signifies the importance of Delhi airport in the overall group portfolio.
“Fraport will continue to support operations at Delhi airport under an existing airport operator agreement. I’m pleased that we will support and stay connected with our partners in Delhi even after the closing of the transaction,” said Fraport CEO Dr. Stefan Schulte.
The transaction will be closed within the next 180 days, subject to approval of AAI and GMR Airports Infrastructure Ltd shareholders.
According to industry observers, Fraport’s exit from Delhi airport was a given and the only issues holding it back was valuation and GMR group’s financial position
French airport operator acquired 49 per cent stake in GMR group’s airport business in 2020. The group has also been successful in issuing bonds to refinance high cost debt.