Tata Group, GIC, SSG Capital to Co-Invest in GMR Airports


In a recent development, leading business conglomerate Tata Group along with Singapore based sovereign wealth fund GIC Ltd and Hong Kong based asset management firm SSG Capital has announced to co-invest in GMR Infrastructure Ltd’s airport business. The three will together invest Rs 8000 crore in the ratio of 44:33:22.

According to GMR Infrastructure, out of the total investment, Rs 1000 crore will come as equity infusion into GMR Airports Ltd and will help in ending the debt of the company. On the other hand, the rest 7000 crores will be used by the three entities to buy GMR Airports shares from the parent company and its sister companies. This will reduce the company’s debt to Rs 12,000 crore.

After the deal, GMR infrastructure and its companies will own 54% stake, while the Employee Welfare Trust will own 2% stake, followed by TATA, GIC and SSC Capital Management will hold a stake of 20%, 15%, and 10% respectively.

According to sources from TATA Group, “With this deal, the company have put their leg in the airport management business. TATA has already made investments in two Indian Airlines namely Vistara and Air Asia India.”

Welcoming the deal, Grandhi Kiran Kumar, managing director, and chief executive of GMR Infrastructure, said that the proposed investment will strengthen the unparalleled airport platform created by GMR Group and will reduce company’s debt substantially, establishing our balance sheet.

At Present, GMR Airport owns and operates Delhi International Airport and Hyderabad International Airports and is constructing new airports in Goa and Nagpur.