Consortium invests $125m in GMR airports unit

The airports division of Bangalore-based firm GMR, which operates airports in Hyderabad, Delhi and Istanbul, also recently received a commitment of about $200m from the Macquarie-SBI Infrastructure Fund.

A group of private investors has committed Rs.$5.85 billion (€84.4 million; $125 million) to GMR Airports Holding, the airports subsidiary of publicly traded Indian firm GMR Infrastructure.

In a statement to the Bombay Stock Exchange, GMR said Standard Chartered Private Equity, Build India Capital Advisors, and funds managed by JM Financial made the investment in the form of compulsorily convertible shares.

Build India Capital Advisors is an affiliate of Citi Capital Advisors focused on infrastructure investments across several sectors in India, according to Citi’s website.

Bangalore-based GMR develops and operates airports in New Delhi, Hyderabad and Istanbul as well as in Malé, the capital of the Maldives, according to GMR’s website. In its 2010 annual report, GMR said the airport division contributed Rs.$14.8 billion, or 32.6 percent, of the firm’s net income for the year ended 31 March. While net profit fell from Rs.$2.8 billion in 2009 to Rs.$1.5 billion in 2010, net sales and operating income for the airport division increased by 25 percent, according to the annual report.

Earlier this year, GMR Airports also received a commitment of Rs.$8.9 billion from the Macquarie SBI Infrastructure Fund, which is jointly managed by Macquarie and the State Bank of India.

Beyond airports, GMR focuses on sectors including highways, social infrastructure, and urban infrastructure, according to the firm’s website.

GMR's shares closed down Wednesday 0.76 percent at Rs.$32.75.