GMR Airports Infrastructure witnessed a significant surge in its stock price, jumping up to 2.65% on Tuesday, 10th September. This spike, which pushed shares to ₹93.31 apiece on the BSE, came on the back of a major announcement by the company regarding the acquisition of Fraport AG Frankfurt Airport Services’ 10% stake in Delhi International Airport (DIAL). The deal, valued at $126 million, is expected to strengthen GMR’s position in the airport sector, offering new opportunities for those looking to invest in stocks related to infrastructure.
GMR acquires a larger stake in DIAL
With this transaction, GMR Airports Infrastructure (GIL) will see its share in DIAL rise from 64% to 74%, further consolidating its hold on one of India’s busiest airports. The Airports Authority of India (AAI) will maintain its 26% stake, preserving the joint venture arrangement. According to G Kiran Kumar Grandhi, Corporate Chairman of GMR Group, this move aligns with the company’s goal of consolidating its presence in core assets, with Delhi Airport being a key part of GMR’s portfolio.
This acquisition could have significant implications for investors looking to invest in stocks tied to infrastructure, particularly in the fast-growing aviation sector. GMR's increased stake in DIAL reflects its long-term vision to strengthen its airport operations and maximise the value of its assets.
The Fraport exit: A strategic shift
Fraport, one of the original shareholders in DIAL, has been a key partner in Delhi Airport’s success. Over the years, the German company has provided crucial technical support, helping to establish the airport as a major aviation hub. B S Raju, Business Chairman for Airports at GMR, expressed gratitude for Fraport's contributions, but the acquisition marks a shift in GMR’s strategy to solidify its control over DIAL further. The deal is expected to be completed within 180 days, making it an attractive proposition for those looking to invest in stocks within the infrastructure sector.
A broader investment landscape
GMR Airports Infrastructure’s share price has experienced impressive growth over the years, gaining 505.60% in the past five years, according to BSE data. As of the close on Monday, the company’s market capitalisation stood at ₹95,981.09 crore, further solidifying its position as a heavyweight in the infrastructure industry. The stock also reached a 52-week high of ₹103.70 on 31st July 2024. This strong track record makes GMR Airports Infrastructure a potentially attractive option for those considering long-term investments in the sector.
Key partnerships and expansion
In addition to its operations in Delhi, GMR Airports Infrastructure operates airports in Hyderabad and Goa and manages the Mactan Cebu International Airport in the Philippines. The company is also developing several other airport projects, making it a major player in the global aviation market.
Last month, GMR attracted additional investment when private equity firm GQG Partners increased its stake in the company to 5.17%. GQG Partners, known for its investments in major players like Adani Group, purchased a further 0.43% of GMR shares, worth over ₹433 crore. This move highlights the growing confidence in GMR’s prospects, especially for those looking to invest in stocks with strong growth potential.
Final thoughts
The recent acquisition of Fraport’s stake in Delhi International Airport underscores GMR’s commitment to expanding its influence in the airport sector. With the aviation industry continuing to grow and GMR positioned as a leading player, investors may see this as an opportune moment to invest in stocks related to infrastructure. With its impressive financial performance and strategic acquisitions, GMR Airports Infrastructure appears poised for further success in the years to come.
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