GMR Airports Set to Raise Over ₹60 Billion in Landmark Bond Issue

1 min read     Updated on 31 Jul 2025, 03:03 PM
scanxBy ScanX News Team
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Overview

GMR Airports is set to raise over ₹60 billion ($685.13 million) through a two-part bond offering. The issue includes ₹18 billion in 18-month bonds targeting mutual funds and ₹42 billion in 3-year bonds aimed at foreign lenders. Both bonds carry a 10.50% annual coupon rate and are rated A+ by Crisil. The company expects to complete the fundraising within days, marking a significant financial milestone.

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*this image is generated using AI for illustrative purposes only.

GMR Airports , a prominent airport operator in India, is poised to make waves in the corporate debt market with its largest bond issue to date. The company has finalized terms to raise more than ₹60 billion ($685.13 million) through a strategic two-part bond offering.

Bond Structure and Terms

The bond issue is structured as follows:

Bond Type Amount (₹ in crores) Tenure Coupon Rate Target Investors
Short-term 1,800 18 months 10.50% Primarily mutual funds
Long-term 4,200 3 years 10.50% Large foreign lenders

Key Highlights

  • Total Issue Size: Over ₹60 billion ($685.13 million)
  • Coupon Rate: Both bond maturities will carry an annual coupon rate of 10.50%
  • Credit Rating: A+ by Crisil

Investor Appeal

The bond issue is strategically designed to attract different types of investors:

  1. Short-term Bonds: ₹18 billion will be raised through 18-month bonds, primarily targeting mutual funds.
  2. Long-term Bonds: ₹42 billion will be raised through 3-year bonds, aimed at large foreign lenders.

Timeline and Completion

The company expects to complete this significant fundraising initiative within the next few days, marking a major milestone in its financial strategy.

About GMR Airports

GMR Airports is a leading airport operator in India, managing multiple key airports including those in Delhi and Hyderabad. The company's strong credit rating of A+ by Crisil reflects its robust financial position and operational capabilities in the aviation infrastructure sector.

This landmark bond issue underscores GMR Airports' strong standing in the market and its ability to attract substantial capital for its operations and potential expansion plans. The successful completion of this bond issue could significantly bolster the company's financial position and support its future growth initiatives in the dynamic aviation sector.

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GMR Airports Reports Strong Q1 Performance with 32% Revenue Growth

2 min read     Updated on 29 Jul 2025, 10:28 PM
scanxBy ScanX News Team
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Overview

GMR Airports Limited (GAL) reported robust Q1 results with a 32% year-over-year increase in total income to INR 3,321.00 crore and a 26% rise in EBITDA to INR 1,280.00 crore. Passenger traffic across GAL's airports grew by 4% to 30.1 million. Key developments include revised tariff implementation at Delhi Airport, favorable legal outcome regarding Monthly Annual Fee payments, dividend declaration by Hyderabad Airport, expansion of non-aero businesses, and credit rating upgrade for Delhi Airport. Hyderabad Airport achieved record quarterly traffic, while Goa Airport captured 43% market share of Goa's system traffic.

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*this image is generated using AI for illustrative purposes only.

GMR Airports Limited (GAL), one of the world's largest private airport operators, has reported robust financial results for the first quarter, demonstrating significant growth and operational improvements across its portfolio.

Financial Highlights

For Q1, GAL posted a 32% year-over-year increase in total income, reaching INR 3,321.00 crore. The company's EBITDA saw a substantial rise of 26% compared to the same period last year, hitting a record high of INR 1,280.00 crore. This strong performance was primarily driven by the implementation of revised tariffs at Delhi International Airport Limited (DIAL) from mid-April.

Operational Performance

GAL's owned airports handled a total of 30.1 million passengers in Q1, marking a 4% increase year-over-year. Notably, Hyderabad International Airport achieved its highest-ever quarterly traffic, surpassing 8 million passengers for the first time.

Key Developments

  1. Tariff Implementation: DIAL implemented revised tariffs for Control Period 4, resulting in significant improvement in its financials.

  2. Legal Developments: The Delhi High Court upheld an arbitral award in favor of DIAL regarding Monthly Annual Fee (MAF) payments to Airports Authority of India (AAI) for the period from March 19, 2020, to February 28, 2022.

  3. Dividend Declaration: GMR Hyderabad International Airport Limited declared a second dividend of INR 2.50 per share, bringing the total dividend to INR 10.00 per share (INR 378.00 crore).

  4. Expansion of Non-Aero Businesses: GAL is making strides in expanding its non-aeronautical revenue streams:

    • Took over cargo operations at Delhi Airport from mid-May
    • Started operating duty-free business at Delhi Airport from July 28
    • Set to take over duty-free operations at Hyderabad Airport in Q2
  5. Credit Rating Upgrade: India Ratings and Research upgraded DIAL's debt instruments to 'IND AA' with a Stable Outlook, reflecting improved financial performance and outlook.

Airport-wise Performance

  • Delhi Airport (DIAL): Reported its highest EBITDA since Q1 FY22, despite a slight 1.2% decrease in passenger traffic.
  • Hyderabad Airport (GHIAL): Achieved record quarterly traffic and EBITDA.
  • Goa Airport: Captured about 43% market share of Goa's system traffic in Q1.

Future Outlook

GAL continues to focus on expanding its airport adjacency businesses and land monetization efforts. The company is also making steady progress on greenfield projects such as Bhogapuram Airport in Visakhapatnam and Crete Airport in Greece.

Grandhi Kiran Kumar, Managing Director & CEO of GMR Airports Limited, commented, "Our Q1 results demonstrate the strength of our diversified airport portfolio and the success of our strategic initiatives. We remain committed to enhancing passenger experience, expanding our non-aero revenues, and creating value for all stakeholders."

As GMR Airports Limited continues to strengthen its position in the global aviation sector, the company's focus on operational excellence and strategic expansion is expected to drive sustainable growth in the coming quarters.

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