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

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 % stake in the business for 40 billion rupees ($598.18 million).

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 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 it if the fund requirements are met," IFR quoted the source as saying.