You will see many more privatised airports in India soon. Here's why

GVK Power & Infrastructure is likely to file a draft prospectus for an up to $250 million initial public offer (IPO) of its airport unit soon, four sources involved in the process told Reuters, amid a boom in air travel in the country.


The unit, GVK Airport Developers Pvt operates airports in Mumbai as well as in Bengaluru. It is also developing airports at Bali and Yogyakarta in Indonesia, its website showed.

GVK is seeking to benefit from surging travel in India. Passenger traffic in Indian airports was up 11 per cent during April-December 2014, compared with a year earlier, according to data from Airports Authority of India.


"I can't tell you the timing for sure, but we are working to file for the GVK Airport's IPO ASAP (as soon as possible)," said one of the sources.

GVK has mandated Citigroup, Bank of America-Merrill Lynch, Axis CapitalBSE 4.97 % and JM Financial Services to manage the IPO, the sources added. The sources declined to be named as the plans were not public.


When contacted, Issac George, director and chief financial officer of GVK Power and Infrastructure, told Reuters it would be "too premature" to talk about an IPO filing. Citigroup, Bank of America-Merrill Lynch, and Axis declined to comment, while JM Financial was not immediately available for comments.

If the IPO is completed, GVK Airport would be the first airport operator to be listed in India. GVK Power also builds roads and power plants.


The company would use part of the proceeds to reduce debt and also expand some of the non-aviation infrastructure at its Mumbai and Bengaluru airports, one of the sources said.

GVK's IPO comes as IndiGo, is also preparing to file a draft prospectus by May for a stock listing to raise $300 million to $400 million, two people with knowledge of the plans said.