By Staff Correspondent
Today, GMR Infrastructure Limited started trading as India’s first pure-play airports’ company. With this development, for the first time, investors now have the opportunity to invest in the airports’ sector in the country.
GMR Infrastructure Limited shares started trading ex-GPUIL today; this is post the demerger of the non-airports business of GMR Infrastructure Limited into GMR Power and Urban Infrastructure Limited (GPUIL).
With this development, the existing shareholders of GMR Infrastructure will receive one equity share of Rs. Five/-(Face value) each of GMR Power and Urban Infra Limited for holding 10 equity shares of Rs.1/- (Face value) share of each GMR Infrastructure Limited.
The demerger happened through a vertical split and resulted in listed companies – GIL and GPUIL and mirror shareholding of both. All the existing shareholders of GIL will become shareholders of GPUIL in the same proportion. GPUIL shares will start trading independently on the stock exchange in February 2022 after SEBI/stock exchanges approvals.
GIL today becomes the only pure-play airports’ platform with solid cash flow generation potential.
According to CAPA, GMR Infrastructure is the world’s second-largest private airport operator after France’s VINCI Airports, offering growth opportunities. It is the only Indian airport developer having the most substantial international presence.
The demerger also facilitates strategic partnerships at different platforms allowing businesses to raise capital and leverage synergistic advantages.
GIL’s airport portfolio has around 182 million per annum passenger capacity (pre-Covid) in operation and is under development.
Operating assets include:
- Indira Gandhi International Airport in New Delhi
- Rajiv Gandhi International Airport in Hyderabad
- Mactan Cebu International Airport in the Philippines (in partnership with Megawide)
- Medan Airport, Indonesia (with Indonesia’s Angkasa Pura II)
Greenfield projects under development include:
- GMR Goa International Airport at Mopa in Goa
- Heraklion International Airport, Crete, Greece (in partnership with GEK Terna)
Project/construction completed:
- The new terminal building of Clark International Airport (Along with its consortium)
Upcoming airport projects include:
- Bhogapuram greenfield airport in Andhra Pradesh
GIL has an established position as the largest private airport operator in India based on passenger traffic. It operates the iconic IGI Airport in Delhi, the largest and fastest-growing airport in India. It also runs Hyderabad Airport, a pioneering greenfield airport known for several technological innovations. IGIA serves as business, tourism, passenger, and Cargo and logistic hubs. Similarly, GMR Hyderabad International Airport operates as a business, passenger, Cargo and Logistics hub.
Currently, the company is developing three major greenfield airport projects across India and Greece. Goa and Bhogapuram airports in India are poised to transform the economy and landscape of the surrounding areas when ready. Crete airport in Greece will similarly play a significant role in the region’s local economy.
The upcoming greenfield MOPA airport, to be operational by 2022 in the western Indian state of Goa, will serve as a tourism hub for the country. GMR’s another upcoming greenfield airport Bhogapuram in Andhra Pradesh, is also poised to boost tourism and the local economy in Southeast India.
The company is uniquely positioned to leverage the strategic partnerships to pursue international expansion. It can exploit its expertise and management to take up potentially high-growth projects for non-aeronautical concessionaires, like Duty-Free and retail, Car Parking, Cargo etc.
GIL’s assets in Crete (Greece) and Mactan-Cebu (Philippines) can serve as scissor hubs for transit traffic to/from India and Europe and India and Australia from Delhi, Hyderabad and Goa.
As a leading regional and international destination, Greece provides GMR with a strategic foothold in Europe with the new airport. Greece has been one of the strongest performing tourism markets in the Mediterranean in recent years. In 2019, the country attracted an estimated 34 million visitors, ranking the eighth-most popular destination in Europe.
With outbound leisure from India growing at a double-digit rate before COVID-19, Greece is an ideal and value-for-money destination with a pleasant climate and unique cultural, historical and natural attractions.
It has also signed the concession agreement to the commission, operationalising and maintaining the civilian enclave at the Bidar Airport in North Karnataka.
The cargo capacity and potential of GIL are also immense. While IGIA in Delhi handled 955,000 metric tonnes of freight in the fiscal year 2020 and emerged as the country’s leading cargo handling airport, its RGIA in Hyderabad dealt with an annual cargo volume of about 100,000 metric tonnes, illustrating how it can evolve to become a transit cargo hub. Its upcoming airports also have immense potential for cargo business.
GIL has showcased a considerable prospective in the real estate space as well. Its proposed business park in Hyderabad has contributed to massive optimism amongst real estate industry watchers. It is planning an investment of approximately Rs.350 crore for establishing its first office park in Hyderabad. In 2019, it had raised Rs.2,000 crore from real estate monetisation.
