Three PE firms to invest in GMR Airport: Report

GMR Infrastructure Ltd is likely to see three private equity firms invest close to Rs 15 billion in its unit GMR Airport Holdings, which runs the Delhi and Hyderabad airports, the Economic Times said on Thursday.

Two of the funds are SBI-Macquarie, a joint venture between India's largest bank and the Australian investment bank; the PE arm of Standard Chartered PLC, while the third is the PE arm of a south Indian bank, according to people familiar with the development.

SBI-Macquarie Fund will invest Rs 9 billion in GMR's unit and all three private equity firms will invest through compulsorily convertible preference shares, the report said.

The Foreign Investment Promotion Board (FIPB) on February 11, approved GMR's proposal to raise money from SBI-Macquarie and the other funds, the report said, quoting an unnamed FIPB official.

The company plans to use funds the airports arm may raise for acquisitions and new projects and not for its existing portfolio, chief financial officer A Subba Rao said.

GMR Infra has a net debt of Rs 153 billion and interest cost on account of the Delhi airport is Rs 900 million.

GMR officials could not be immediately reached for a comment by Reuters.