India's GVK likely to shelve $500 mln airports unit IPO if stake sale goes through - IFR

GVK Power & Infrastructure

16/12/2015 08:22

SINGAPORE/MUMBAI, Dec 16 (Reuters) - India's GVK group is 
likely to shelve a $500 million initial public offering of its 
airports unit if a planned stake sale in that business goes 
through, IFR reported, citing a source close to the transaction. 
    The Times of India newspaper earlier on Wednesday reported 
that the company had shortlisted five bidders to sell up to 49 
percent stake in the business for 40 billion rupees ($598.18 
million). (http://bit.ly/1P6Js4e) 
    GVK Airport Developers has been exploring fund-raising 
options including an IPO or through private equity investors to 
reduce its debt, parent GVK Power and Infrastructure  GVKP.NS  
said in a filing on Wednesday. 
    A GVK spokesman declined to comment when reached by Reuters. 
    GVK Airport, which runs the Mumbai and Bangalore 
international airports, had planned to file its IPO prospectus 
with India's market regulator in September but did not do so, 
IFR, a Thomson Reuters publication, said. 
    "The private equity valuation is much higher than public 
valuations. It makes sense not to list if the fund requirements 
are met," IFR quoted the source as saying. 
 ($1 = 66.8700 Indian rupees) 
 
 (Reporting by S. Anuradha in Singapore and Karen Rebelo in 
Mumbai; Editing by Biju Dwarakanath adn Subhranshu Sahu) 
 ((karen.rebelo@thomsonreuters.com; +91 22 33177021; Reuters 
Messaging: karen.rebelo.thomsonreuters.com@reuters.net)) 
 
Keywords: GVK AIRPORT DEV IPO/