GVK Power & Infrastructure is going to launch an initial public offering of its airport arm, reports CNBC-TV18 quoting unnamed sources.
The company is planning to raise Rs 3,500 crore by listing its airport arm, GVK Airport Developers, that operates in Mumbai & Bangalore airports. The IPO proceeds will be used to de-leverage GVK's balance sheet.
GVK Power and Infrastructure has debt of Rs 3,500 crore at holding company.
It is learnt that GVK has undertaken structuring of the company to meet SEBI listing norms. GVK Airport will file draft red herring prospectus (DRHP) by July-end and launch IPO by December-end.
JM Financial, Citibank are lead managers for GVK Airport Developers IPO. It will be the first airport operator to list in India.
Meanwhile, GVK said it is exploring various options to raise resources for airport business.
The stock rallied 13.5 percent intraday. It closed at Rs 9.10, up Rs 0.87, or 10.57 percent on the BSE.
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