Macquarie Indian fund invests $200m in GMR Airports

The Macquarie SBI Infrastructure Fund has invested in a GMR Infrastructure subsidiary that operates airports in Delhi, Hyderabad and Istanbul.

The Macquarie SBI Infrastructure Fund is investing Rs.$8.9 billion (€139.5 million;  $196.8 million) in GMR Airports Holding, a subsidiary of publicly-listed Indian firm GMR Infrastructure, GMR said in a statement to the Bombay Stock Exchange.

Bangalore-based GMR develops and operates airports in Delhi, Hyderabad and Istanbul, according to its website.

The airport division accounted for Rs.$14.8 billion, or 32.6 percent, of the firm’s net income for the year ended 31 March 2010, according to GMR’s most recent annual report. Net sales and operating income for the airport division increased by 25 percent over the previous year, but net profit fell from Rs.$2.8 billion in 2009 to Rs.$1.5 billion in 2010.

This marks the fourth investment for the Macquarie SBI Infrastructure fund, which is jointly managed by Macquarie and the State Bank of India. The fund, which raised $1.2 billion from both foreign and domestic investors, is now more than 50 percent committed.

Earlier this year, the fund also invested $130 million in a Moser Baer-sponsored thermal power plant in the central Indian region of Madhya Pradesh.

Beyond airports, GMR Infrastructure targets investments in urban infrastructure, highways and social infrastructure, according to its website. The airport division owns a 54 percent stake in the development and operation of Indira Gandhi International airport in New Delhi; a 63 percent stake in the joint venture developing the Rajiv Gandhi International Airport in Hyderabad; and a 40 percent stake in the operation and expansion of Sabiha Gokcen International Airport in Istanbul, according to GMR’s annual report.

GMR’s shares closed Thursday up 4.36 percent at Rs.$40.70.