GQG Partners checks in at GMR Airports Infrastructure, buys 4.7% stake

GQG Partners acquired a 4.7 per cent stake in GMR Airports Infrastructure on Friday, sending the stock up 12 per cent.

The US-based boutique investment firm, which has gained prominence because of its successful investments in Adani group stocks, purchased shares at Rs 59.1 each, amounting to a total outgo of Rs 1,672 crore, according to data provided by BSE. The GMR Group firm’s shares, on the other hand, closed at nearly Rs 69 apiece following the uptick.

ASN Investments divested a 7.3 per cent stake. Other sellers included Varanium India, A/D Investors Fund, and Deccan Value Investors Fund, all classified as non-promoter entities. Equity stakes amounting to 11.8 per cent, valued at Rs 4,136 crore, changed hands.

Besides GQG, buyers included Nomura India Investment Fund Mother Fund (which bought a 1 per cent stake) and Stichting APG Emerging Markets (0.6 per cent). The identities of the buyers for the remaining 5.5 per cent stake were not disclosed.

This year, GQG has increased its investments in several Indian companies, with its largest bet on Adani group stocks. GQG’s investments in various Adani group companies since March have yielded substantial returns. The investment firm, led by Rajiv Jain, has acquired stakes in five Adani group firms, valued at about $4.2 billion, which have appreciated by over 75 per cent to nearly $7.5 billion due to the recent rally in the group stocks.

GQG has also acquired a 2.6 per cent stake in IDFC First Bank for Rs 1,527 crore and a nearly 6 per cent stake in Patanjali Foods for Rs 2,400 crore.

GMR Group operates in a similar business domain as the Adani group. GMR Airports is currently developing two significant greenfield airport projects — one in Bhogapuram, Andhra Pradesh, and the other in Heraklion, Crete, Greece, in collaboration with construction company GEK Terna.

Within India, GMR Group manages operations at three airports: Delhi, Hyderabad, and Mopa (Goa’s second airport). Additionally, the group operates two international airports abroad: Cebu in the Philippines and Medan in Indonesia.

In 2022-23, these airports collectively facilitated the movement of more than 100 million passengers. The three Indian airports recorded a passenger count of 87 million, establishing a substantial 26.6 per cent market share in domestic air traffic.

GMR Group is currently overseeing the expansion of the Delhi and Hyderabad airports, with the completion of the expansion work anticipated by March next year, according to GMR Airports Infrastructure’s annual report for 2022-23. Upon completion of the expansion, the Delhi airport will have the capacity to handle 100 million passengers per annum (MPPA), while the Hyderabad airport will be able to accommodate 34 MPPA.

The Mopa airport at Mopa was inaugurated by Prime Minister Narendra Modi on December 11 last year. It handled its first domestic flight and international flight on January 5 and July 21, respectively. Given the growing demand from airlines and high passenger footfall, the group is already preparing to expand the terminal capacity from the existing 4.4 MPPA to 7.7 MPPA.

In December 2022, the group announced a partnership with the National Investment and Infrastructure Fund (NIIF), a large investment platform anchored by the Government of India. Under this partnership, NIIF will invest in three of the group's airport projects. As a first step, NIIF invested Rs 631 crore in GMR Goa International Airport Limited — the holding company for Mopa airport — in the form of compulsory convertible debentures (CCDs).