GMR Group has announced that it has reached an agreement with a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for a substantial investment of ₹6,300 crore in structured debt instruments of GMR Infra Enterprises Private Limited.
The company said, "Completion of the transaction is subject to the satisfaction of conditions precedent and regulatory approvals". Once completed, GMR Group plans to utilize the proceeds to refinance all external debt of GMR Enterprise Private Ltd (GEPL), which is the promoter of GMR Airports Ltd (GAL). Additionally, the completion of the deal will lead to a significant reduction in the GMR promoter group’s pledge on its shareholding in GAL.
GMR Group operates three major airports in India located in Delhi, Hyderabad, and Goa, along with two airports in the Philippines and Indonesia. GEPL is a promoter group entity controlled by G M Rao. Kiran Grandhi, the Corporate Chairman of GMR Group, mentioned that the company has successfully reduced a considerable amount of corporate debt in recent years.
According to its latest annual report, GMR Enterprises' total debt rose nearly 4 percent year-on-year, reaching Rs 4,477 crore. The Abu Dhabi Investment Authority (ADIA) has a history of investing in airport infrastructure in India; in 2019, GVK Airports raised approximately Rs 7,600 crore from ADIA, PSP Investments, and the National Investment and Infrastructure Fund.
ADIA, recognized as the largest sovereign wealth fund in the United Arab Emirates (UAE), has also commenced operations at the Gujarat International Finance Tec-City (GIFT City), allocating a fund of $4-5 billion for investments in India. Notably, the UAE has become the largest Arab investor in India, with investments totaling approximately $3 billion in the fiscal year 2023-24. Additionally, the UAE has been identified as the sixth-largest source of Foreign Direct Investment (FDI) for 2023-24 and the seventh-largest overall since 2000.