GMR Airports Infrastructure Completes Merger with GAL and GIDL
GMR Airports Infrastructure completes merger with GAL and GIDL, enhancing its airport assets and corporate governance, with Groupe ADP becoming a key shareholder
by Damodharan N
Updated Jul 26, 2024
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GMR Airports Infrastructure Ltd (GIL) has successfully completed its merger with GMR Airports Ltd (GAL) and GMR Infra Developers Ltd (GIDL). The merger, effective from 1 April 2023, follows the initial announcement on 19 March 2023. This merger simplifies GIL’s corporate structure and enhances its position in the aviation sector.
The merger is a key step in GIL’s strategy to create a pure-play airport company. In 2020, GIL formed a strategic partnership with Groupe ADP, which acquired a 49% stake in GAL. In 2021, GIL demerged its non-airport businesses into GMR Power and Urban Infra Ltd, making GIL a leading private airport operator in the world.
With the completion of this merger, GIL now owns 100% of its airport business, and Groupe ADP has become a shareholder in GIL. Groupe ADP’s stake is divided into ordinary equity shares and Optionally Convertible Redeemable Preference Shares (OCRPS). As a result, GIL’s total equity shares have increased to over 1 billion, with a market capitalization of approximately Rs. 99,518 Crores (~USD 11.9 billion).
Shareholding pattern of GMR Airports Infrastructure Ltd (GIL) upon completion of the merger:
|
Shareholder |
Shareholding Percentage |
Number of Equity Shares |
Number of OCRPS |
|
GMR Group |
33.8% |
Not Specified |
Not Applicable |
|
Groupe ADP |
32.3% |
3,41,06,14,011 |
260,44,40,880 |
|
Public |
33.9% |
Not Specified |
Not Applicable |
|
Total |
100% |
10,55,89,75,952 |
260,44,40,880 |
- Total Paid-Up Equity Shares: 10,55,89,75,952
- Total Market Capitalization: Rs. 99,518 Crores (~USD 11.9 Billion)
The merger brings several benefits:
- It aligns airport assets directly with GIL shareholders.
- Corporate governance improves with Groupe ADP directors joining the board.
- GIL can now more efficiently generate free cash flow and improve profitability from its airport operations.
- The expanded capital base could lead to inclusion in more indices, attracting additional investment.
Additionally, GIL has strengthened its balance sheet through recent actions, including increasing its stake in Hyderabad Airport, converting FCCBs into equity, and completing the merger. This positions GIL for future growth and access to capital at lower costs.
Mr. GM Rao, Chairman of GMR Group, expressed his enthusiasm, stating, “I am delighted to announce the completion of our merger, a testament to our commitment to growth and excellence. We welcome Groupe ADP, our strategic partner, to the listed entity.
Mr. Kiran Kumar Grandhi, Corporate Chairman, added, “As envisaged earlier in 2020, to simplify the corporate structure and strengthen the balance sheet, this merger is the final step in the right direction, executed in a timely manner. This milestone represents a strategic step towards positioning GIL for the next stage of growth
July 2024 Announcement Here
March 2023 announcement - Here
GMR Airports Infrastructure
GMR Airports Infrastructure Limited (GIL), formerly GMR Infrastructure Limited, focuses on developing, operating, and maintaining airports and providing integrated security solutions through its subsidiaries.
It manages major airports like Delhi International and Hyderabad International in India, and international airports in the Philippines and Greece. GIL has expanded its portfolio with new projects and international partnerships, including with Groupe ADP, to enhance its global airport operations and standards. RAXA Techno Security Solutions, another GIL unit, offers advanced security solutions and training.
GMR Infra Developers
GMR Infra Developers Limited, incorporated on February 27, 2017, is a public company based in Mumbai, Maharashtra. It is a non-government company with an authorized and paid-up capital of ₹500,000. The company is known for its strategic partnership with GMR Airports Infrastructure Limited and Groupe ADP.
This partnership aims to establish a leading global airports alliance, focusing on sustainability, passenger experience, and high standards in airport operations and management.
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GMR Airports Infrastructure Completes Merger with GAL and GIDL - FAQs
1. What is the main purpose of the merger between GMR Airports Ltd (GAL) and GMR Infra Developers Ltd (GIDL) with GMR Airports Infrastructure Ltd (GIL)?
The merger simplifies GIL's corporate structure and strengthens its position in the aviation sector by consolidating all airport assets under one entity.
2. When did the merger become effective?
The merger became effective on April 1, 2023.
3. What was the strategic reason behind this merger?
The merger aligns with GIL’s strategy to become a pure-play airport company and enhance shareholder value.
4. What was GIL’s shareholding pattern after the merger?
GMR Group holds 33.8%, Groupe ADP holds 32.3%, and the public holds 33.9%.
5. How did Groupe ADP’s involvement change after the merger?
Groupe ADP became a shareholder in GIL, holding both ordinary equity shares and Optionally Convertible Redeemable Preference Shares (OCRPS).
6. What is the total market capitalization of GIL following the merger?
The total market capitalization is approximately Rs. 99,518 Crores (~USD 11.9 billion).
7. How many equity shares does GIL have after the merger?
GIL has a total of 1,055,897,5952 equity shares.
8. What are the benefits of the merger for GIL?
Benefits include improved corporate governance, more efficient generation of free cash flow, and potential inclusion in more market indices.
9. How has the merger affected GIL’s balance sheet?
The merger has strengthened GIL’s balance sheet, improving its access to growth capital and reducing costs.
10. What is GIL’s plan for the future after this merger?
GIL aims to leverage its expanded capabilities, continue growth in the aviation sector, and enhance its global presence through strategic partnerships and investments.
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