GVK mulls listing of airports biz abroad
By Sharan Poovanna | ENS - BANGALORE
26th February 2013 09:43 AM
Private infrastructure company, GVK group is mulling over options to list their airports business abroad to bring in more cash to the company.
Though the plans are yet to be confirmed, sources indicate that the company has been in talks with stock exchanges abroad to bring in more liquidity options into their airports business. The Indian infrastructure sector, which has seen some of its worst times due to persistent macroeconomic conditions is expecting investments to the tune of $1 trillion to fund projects during the 12th Plan (2012-17) period.
The company will follow another infrastructure major, GMR which listed its subsidiary at the Singapore exchanges last year. According to the Interim report of the High Level Committee in Financing of Infrastructure (Planning Commission) last year, the airports sector alone is expecting an investment of Rs 71,000 crore during the 12th Plan.
Private sector companies have been seeking to increase their participation in government projects. The report also estimates that private sector investment contribution will be as high as 47% to ensure that the infrastructure sector is enabled to add 9.14% (average for 12th Plan) to the GDP as against 7.22% (average in 11th Plan). Added to this is the boost by Civil Aviation Ministry which has sanctioned 15 new airports, of which ‘a majority are by private players’.
Though the company has refused to comment on ‘speculations’ it has been learnt that they have already had first round talks with the Singapore and Tokyo exchanges.
Sources say that they were in only the initial stages and were working to ensure all aspects are covered before they make their decision.
- South block watch
- Greasepaint fails to hide K-town tension
- T M Soundararajan: An Alchemist who mixed melodies with emotions
- UPA-II anniversary: No honest appraisal
- Woolwich attack provokes anti-Muslim backlash across UK
- Bangladesh allows transit for foodgrains for Northeast India
- Increasing friction between the Chandy and Chennithala factions
- 'Data shows gambling rampant in India'