Bangalore airport IPO could be coming next year

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November 18, 2022

Fairfax India Holdings Ltd. is considering an original public offering for Bangalore International Airport Ltd. that could value the asset at about Rs 300 billion ($3.7 billion), according to people familiar with the matter.

The Indian arm of Canadian investment group Fairfax Financial Holdings Ltd. is working with a counsel on the implicit table that could take place as soon as coming time, the people said. Fairfax India holds a maturity stake in the proprietor of Kempegowda International Airport, Bengaluru, located in the southern Indian megacity also known as Bangalore.

The Mumbai immolation may raise between Rs 30 billion and Rs 40 billion, they said, asking not to be linked as the information is private. The IPO may correspond of about 75% primary shares and the rest in being shares, one of the people said. reflections are ongoing, details of the table could change and Fairfax could decide not to do with a share trade, the people said. A representative for BIAL could not incontinently note, while Fairfax did not incontinently respond to calls and emails requesting comment.

Fairfax India owns a 54 interest in BIAL as it erected up its shareholding after acquiring its original stake in 2017. It counts Siemens NSE-0.90% Projects gambles and governments among its nonage investors, its website shows. Launched in 2008, BLR Airport has been visited by further than 250 million passengers as of June this time, according to a recent press release. The field serves 61 domestic and 14 transnational destinations, the website shows.

About Bangalore International Airport Limited (BIAL)

Kempegowda International Airport, Bengaluru (BLR Airport), named after founder of the City – Hiriya Kempegowda – has the unique distinction of being the first Greenfield Airport in India, established on a Public-Private Partnership (PPP) model. This heralded a revolution in Indian aviation, as more airports in the Country were privatised, thereafter.  

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In January 2001, Bangalore International Airport Limited (BIAL), formed under the Companies Act, 1956, was incorporated to build, own and operate BLR Airport for a 60-year concession period.  Private promoters hold a 74% stake (Anchorage Infrastructure Investments Holdings Limited: 43.64%; FIH Mauritius Investments Limited: 10.36% and Siemens Projects Ventures: 20%), while the Government (Karnataka State Industrial & Infrastructure Development Corporation Limited: 13%; Airports Authority of India: 13%) hold the remaining 26%.

BLR Airport commenced operations on May 24, 2008 – 33 months from the start of construction. The expansion of the Terminal was completed in 2014 to cater to the steady, unprecedented growth in passenger volumes. Having served 10 million passengers in 2008, KIAB witnessed phenomenal growth during the subsequent years, becoming the fastest growing airport in the world in 2018. KIAB concluded Calendar Year 2019 with 33.65 million passengers. 

Powered with cutting-edge technology, including Contactless Passenger Processing, Self-Bag-Drops, Biometric-based self-boarding solution, BLR Airport connects Bengaluru to 61 domestic and 14 international destinations.