Delhi Cargo City fundraise and SPV approved by GMR Airports board
Board greenlights major capital raise and new subsidiary to drive Cargo City development at Delhi airport
GMR Airports Ltd has received board approval to raise up to ₹5,000 crore through a mix of financial instruments and to set up a Special Purpose Vehicle (SPV) for the development of a dedicated Cargo City at Delhi’s Indira Gandhi International Airport (IGIA).
At a meeting held on Thursday, August 21, the Board of Directors cleared an enabling resolution that will allow the company to mobilise funds in one or more tranches. The capital may be raised through various instruments including fully paid-up equity shares, non-convertible debentures with warrants, convertible securities (excluding warrants), or Foreign Currency Convertible Bonds (FCCBs). The fundraising is subject to shareholder approval as well as regulatory and statutory clearances.
In a parallel move, the board also approved the creation of a wholly owned subsidiary to act as an SPV for executing the Cargo City project. This SPV will oversee the financing, design, construction, operation, and maintenance of the cargo facility.
The proposed Cargo City will be developed on a 50.5-acre site within IGIA, the country’s largest airport, operated by Delhi International Airport Ltd (DIAL), a subsidiary of GMR Airports. GMR was recently selected as the successful bidder for this strategic infrastructure initiative, as disclosed in its August 13 filing.
The Cargo City is expected to bolster air cargo handling capabilities at IGIA and align with GMR Airports’ broader strategy of expanding its presence in the Indian aviation sector. The company also operates airports in Hyderabad and Goa.