GVK Group which operates Mumbai international airport, may file a Draft Red Herring Prospectus with market regulator SEBI for an IPO of its airports vertical, a senior executive of the infra major said.
Isaac George, CFO of GVK, also said the State Bank of India has given an initial term sheet on the financial closure of the Navi Mumbai Airport project that the company has been awarded and a clear picture on the finances would emerge in a couple of months.
"DRHP for (airports vertical), we are hoping, will be filed in July. Quantum of the amount to be raised has not yet been decided. But it (Initial Public Offering) is purely to retire the debt. We do not want to take anything home. Because this is going to be a fresh issue of shares, everybody will have to proportionally sell," he told PTI.
The GVK-led consortium has 74 per cent and Airports Authority of India has the remaining stake in MIAL.
The city-based group last year exited from Bangalore International Airport by selling its stake to Fairfax India Holding.
The company made Rs 8.72 billion profit from the stake sale.
George said the debt as of now on the airport segment is Rs 80 billion.
As per the Q4 results statement, the airport segment of GVKPIL generated Rs 24.34 billion revenues last year with Rs 5.94 billion profit.
"The total debt on the airport vertical is Rs 8,000 crore (Rs 80 billion). Debt on power vertical is Rs 11,000 crore (Rs 110 billion). The consolidated debt is Rs 23,400 crore (Rs 234 billion)," he added.
The Infrastructure major bagged the financial bid to build and operate the second international airport in the Mumbai metropolitan region- Navi Mumbai- at an investment of Rs 160 billion this year, beating rival GMR group.
Replying to a query on the Navi Mumbai airport project, he said they are in dialogue with lenders for tying up funds and the amount would be raised on 65:35 (debt-equity) ratio.
"We have time for the financial closure. We are working on tying up finances. Appraisal has been completed by State Bank of India. They have given initial term sheet. Finer details I cannot tell you at this point of time. But we are working on that.
We have sufficient time for the financial closure. Maybe in a month or two we get a clear picture. We are planning to raise about Rs 8000 crore under 65:35," he said.
Mumbai International Airport Limited will hold 74 per cent stake while City and Industrial Development Corporation (CIDCO), the nodal agency for the project.