Delhi Airport stake changes hands in share swap(5)

IDFC Private Equity has exited an investment in a company which controls Delhi International Airport by swapping the stake with shares in its parent company.

Mumbai based IDFC Private Equity has completed a share swap deal with Bangalore based GMR Infrastructure which will see it part with a stake in Delhi International Airport, according to a report by Indian news service, VC Circle.

The deal is being conducted on behalf of its IDFC India Development Fund, one of three funds it manages. Bombay listed company GMR Infrastructure controls the airport through a subsidiary company, Delhi International Airport Pvt Ltd, the report said.

The share swap is designed to provide greater liquidity for IDFC Private Equity as it swaps the unlisted shares of the GMR Infrastructure subsidiary with those of the listed company itself.

The deal is part of a pre-planned agreement between the two companies that meant after three years, IDFC Private Equity would have the option to take a stake in GMR Infrastructure.

IDFC Private Equity completed a similar transaction to exit from GMR Energy, another subsidiary of GMR Infrastructure in 2006. In that deal, IDFC Private Equity swapped a 15 percent stake in GMR Energy for just more than 4 percent in GMR Infrastructure.

It is understood that Delhi International Airport Pvt Ltd has found it hard to renovate the airport, although the government has granted permission to add a development charge to passengers using the airport to help with funding.