In Short:
GMR Group is buying a 10% stake in Delhi International Airport Ltd from Fraport AG for about ₹1,058 crore ($126 million), raising its ownership to 74%. This sale marks Fraport’s exit from India after 18 years. Despite moving out, Fraport will continue to support operations at the airport. The deal is expected to finalize within 180 days, pending approvals.
GMR Group Expands its Footprint in Delhi Airport
Exciting news from the aviation sector! **GMR Group** is set to acquire a **10 per cent** stake in **Delhi International Airport Ltd (DIAL)** from the renowned German airport operator **Fraport AG**. This impressive deal is valued at approximately ₹1058 crore, which translates to about **$126 million**.
New Heights for GMR Group
This acquisition will see **GMR Group** boost its stake to **74 per cent** in DIAL. It’s a significant moment as it also marks the exit of **Fraport AG** from the Indian market after a robust eighteen-year presence. The remaining **26 per cent** stake is held by the **Airport Authority of India (AAI)**, ensuring that the operations of the country’s busiest airport continue smoothly.
A Bit of History
Interestingly, **Fraport AG** was one of the original members of the consortium led by **GMR Group** that bid for the operations of Delhi airport back in **2006**. Their initial investment of ₹245 crore for that **10 per cent** stake has paid off substantially, with the current exit valuation exceeding four times their original investment.
Voices from the Top
**Kiran Kumar Grandhi**, the corporate chairman of **GMR Group**, expressed that this additional stake in DIAL aligns perfectly with the group’s strategy to consolidate its presence in key assets. He emphasized the pivotal role of Delhi airport in their overall portfolio.
On the other hand, **Dr. Stefan Schulte**, the CEO of **Fraport**, conveyed reassurance stating, “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.”
Looking Ahead
The closing of this transaction is anticipated within the next **180 days**, pending approvals from **AAI** and the shareholders of **GMR Airports Infrastructure Ltd**.
Industry experts believe that **Fraport’s exit** from Delhi Airport was inevitable; the main factors delaying this decision were the valuation and the financial standing of **GMR Group**. Notably, a **French airport operator** acquired a **49 per cent** stake in **GMR Group’s airport business** in 2020, showcasing the trust in GMR’s strategic moves. Additionally, the group has successfully issued bonds to refinance its high-cost debt, further strengthening its financial position.
