Bangalore Airport IPO (Public Offer) Could Be At $3.7 Billion Value: Report

Fairfax Financial Holdings Ltd, the Indian arm of a Canadian investment company, is planning an IPO (Initial Public Offering) for Bangalore International Airport Ltd (BIAL) that could be valued at $3.7 billion, according to a Bloomberg News report quoting sources.

Fairfax India, which owns a controlling stake in Bengaluru's Kempegowda International Airport, was collaborating with an advisor on the potential listing, which could happen as early as next year, the report said, citing people familiar with the matter.

Sources told Bloomberg that while the IPO discussions were underway, the specifics of the listing could alter, with Fairfax even deciding not to proceed with the share sale.

On the condition of anonymity as the matter remains private, sources estimated that the IPO might bring in between 30 to 40 billion rupees, the report said. According to one of them, the IPO might include approximately 75 per cent of primary shares and the remaining in existing shares.

That comes on the heels of Fairfax, owned by Canadian billionaire Prem Watsa, denying a media report of a $1.5 billion deal in October. Fairfax has said back then that it was not exiting Bengaluru airport, and had 'no interest' in selling its stake.

Prem Watsa's largest investment in India is Fairfax's over $1 billion investment in the airport. With a $7 billion overall investment in India, it intends to quadruple that amount over the next four to five years.

After purchasing its initial stake in BIAL in 2017, Fairfax India increased its shareholding to 54 per cent, according to BIAL's website. 

Siemens Projects Ventures, with other private promoters in BIAL, owns a 20 per cent stake, and the remaining is held jointly by Karnataka State Industrial & Infrastructure Development Corporation Limited (13 per cent) and Airport Authority of India (13 per cent).

According to the latest press release, the airport opened in 2008 and welcomed more than 250 million people as of June this year, according to the website, with the airport serving 61 domestic and 14 foreign destinations.