Fairfax mulls BIAL IPO at $3.7 billion valuation as soon as next year: Report

IPO

Fairfax Financial Holdings Ltd planning to launch the Initial Public Offering (IPO) of Bengaluru Airport (BIAL) valued at $3.7 billion as soon as next year, Bloomberg reported on November 17.

The Indian arm of Canadian investment group Fairfax Financial Holdings Ltd. is working with an adviser on the potential listing that could take place as soon as next year, the report said quoting people familiar with the matter. Fairfax India holds a majority stake in the owner of Kempegowda International Airport, Bengaluru.

Moneycontrol couldn't independently verify the report.

The Mumbai offering may raise between 30 billion rupees and 40 billion rupees, they said, asking not to be identified as the information is private. The IPO may consist of about 75% primary shares and the rest in existing shares, a person familiar with the matter told Bloomberg.

On October 28, Fairfax, controlled by Canadian billionaire Prem Watsa, said that it has no intention to sell its ownership interest in Bangalore International Airport Limited (BIAL).

Fairfax has invested over $1 billion in the airport - Prem Watsa’s largest investment in India. It has a total investment of $7 billion in India and also plans double it in the next 4-5 years.

Fairfax owns around 54 percent of BIAL, Siemens Project Ventures GmbH holds 20 percent, Airports Authority of India 13 percent, and Karnataka State Industrial and Infrastructure Development Corp 13 percent.