GMR Airports Ltd. plans to acquire an additional 10% stake in Delhi International Airport Limited (DIAL) from German company Fraport AG for $126 million. The strategic move will increase GMR’s control and presence at one of India’s busiest airports, in line with the company’s long-term growth and investment plans in the aviation sector.

Stake Acquisition: GMR Airports Ltd., a major player in India’s aviation infrastructure, is acquiring a 10% stake in DIAL from Fraport AG, a global airport operator headquartered in Germany. The deal, valued at $126 million, marks a significant step in strengthening GMR’s position in the management of the Indira Gandhi International Airport, Delhi.

GMR’s existing stake: Prior to this acquisition, GMR already had a controlling stake in DIAL and this new purchase will further consolidate ownership. Fraport AG has long been a stakeholder in DIAL, but this transaction will increase GMR’s influence on the airport’s operations and strategic decisions.

Strategic Importance: This acquisition is in line with GMR’s broader strategy to expand its presence and influence within the Indian aviation industry. The Indira Gandhi International Airport is one of the busiest in India and a major hub for both domestic and international flights. Increased ownership gives GMR greater control over the airport’s future development, service quality improvements and enhancements to the passenger experience.

Fraport’s Exit: Fraport AG’s decision to sell its stake in DIAL is seen as part of its global restructuring efforts. While the company remains active in the management of several other airports worldwide, its reduced involvement in DIAL reflects a shift in its strategic focus towards other markets.

Financial Impact: The $126 million transaction will strengthen GMR’s airport portfolio and potentially improve its financial position by increasing revenues from operations at DIAL. The airport’s traffic volumes and associated revenues make it a lucrative investment, especially as air travel increases post-pandemic.

Future expansion plans: GMR’s move is also in line with its plans for further expansion in the airport sector. With control of the country’s busiest airport, GMR is well-positioned to capture future growth opportunities, particularly in areas such as cargo handling, airport retailing and infrastructure development.

GMR’s broader role in aviation: In addition to DIAL, GMR Airports Ltd. operates airports in Hyderabad and Goa and is developing other international airport projects. The company’s focus on innovation, technology and sustainability continues to drive growth in the highly competitive airport management sector.