The shares of the world’s second-largest private airport operator rose 5 percent to a 52-week high of Rs 72.30 a share after the firm raised Rs 3,215 crore from financial institutions followed by GQG Partner acquiring a significant stake in the company.
According to a regulatory filing on December 9, GMR Airports Infrastructure’s step-down subsidiary i.e GMR Visakhapatnam International Airport Limited (‘GVIAL’), has raised Rs 3,215 crores from a consortium of five financial institutions to build and operate the greenfield Bhogapuram International Airport.
The consortium is led by India Infrastructure Finance Company Limited (IIFCL), to part finance the Phase I development of Bhogapuram International Airport.
Bhogapuram International Airport expects 6 million passengers annually after completion of the project. The aforesaid debt will have a tenure of 18 years, comprising 3 years of the construction phase, 1 year of stabilization phase, and 14 years of structured repayments.
The overall project cost Rs 4,727 crores. As part of the concession provision, an amount of Rs 134.55 crores, shall be reimbursed by the Andhra Pradesh Airports Development Corporation Limited (APADCL), and the remaining amount shall be funded by way of equity/CCDs/sub-debt, etc.
Recently, US-based investment firm GQG Partners Emerging Markets Fund bought 9.26 lakh equity shares, and Goldman Sachs GQG Partners International Opportunities Fund bought 19.02 equity shares, according to bulk deal data. The shares purchased represent a cumulative stake of 4.7 percent in the company.
GMR Airports Infrastructure shares have delivered a return of 68 percent in the last six months and 65 percent in a year. The company has a 27 percent market share of passenger traffic in India in CY22. The company has a market share of 45 percent in handling private airports.
Presently, the company operates in Delhi International Airport, Hyderabad International Airport, and Manohar International Airport, Goa. The company handles 9 airports in four countries across the globe.
GMR Airports Infrastructure Ltd shares have gained a return of 73 percent in the last six months and 70 percent in a year.
The company’s revenue has increased by 30 percent yearly, from Rs 1,584 crore in Q2FY23 to Rs 2,064 crore in Q2FY24. In the same timeframe, Net losses have marginally decreased from Rs 195 crore to Rs 190 crore.
GMR Infrastructure is mainly engaged in the development, maintenance and operation of airports, the generation of power, coal mining and exploration activities, development of highways, development, maintenance, and operation of special economic zones, and construction business including Engineering, Procurement and Construction (EPC) contracting activities
At the time of writing this report, GMR Airports Infrastructure shares were trading at Rs 71.70 per share, up 5.81 percent from the previous close price.
Written by Omkar Chitnis
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