GMR Airports Limited, a major player in the airport infrastructure sector, has announced a strategic move to expand its presence in the Greek market. The company's wholly-owned step-down subsidiary, GMR Airports Greece Single Member S.A. (GAGSMSA), has acquired a 60% stake in a newly incorporated Greek company, GMR Terna Commercial S.A. (GTCSA), for approximately INR 6.00 crore.

Transaction Details

The acquisition involved GAGSMSA subscribing to 6,00,000 shares of Euro 1 each, totaling Euro 6,00,000 (approximately INR 6.00 crore) in GTCSA. This transaction represents 60% of the paid-up share capital of the newly formed Greek entity.

Strategic Importance

GTCSA is set to play a crucial role in GMR's expansion plans in Greece. The company will be responsible for handling non-aeronautical businesses at the New Heraklion International Airport in Crete, Greece. While GTCSA is yet to commence its business operations, this move is seen as a strategic step to strengthen GMR's position in airport-related businesses.

Alignment with Existing Operations

The acquisition aligns with GAGSMSA's existing business activities related to the development, operation, and maintenance of the Crete airport at Kasteli, Greece. It is expected to bolster GMR's airport adjacencies and airport-related businesses, leveraging the company's expertise in airport infrastructure management.

Regulatory Aspects

According to the company's disclosure:

• The transaction does not require any governmental or regulatory approvals.
• It is not considered a related party transaction.
• The promoter/promoter group of GMR Airports Limited do not hold any interest in the transaction beyond their existing indirect shareholding in GAGSMSA.

Market Impact

This strategic move by GMR Airports Limited demonstrates the company's commitment to expanding its global footprint and diversifying its revenue streams. By entering the non-aeronautical business segment at the New Heraklion International Airport, GMR is positioning itself to capitalize on the growing opportunities in airport infrastructure and related services in Europe.

As the aviation industry continues to recover and grow post-pandemic, such strategic investments could potentially yield significant returns for GMR Airports Limited in the long term. Investors and market watchers will likely keep a close eye on how this acquisition contributes to the company's overall growth strategy and financial performance in the coming quarters.

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:

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.