GQG Exposure To GMR Airports Brings Spotlight On Undervalued Aviation Assets

Rajesh Jain's GQG Partners' acquisition of a 4.7% stake in GMR Airports Infrastructure Ltd. has brought the focus back to India's aviation sector.

The $200 million investment in the country's second-largest airport operator highlights that India's airport infrastructure is undervalued despite consolidation among private operators—GMR Airports and Adani Airport Holdings Ltd. The two have a combined market share of 83.5% of the private airport passenger traffic and 44% of the international passenger traffic.

GQG invested in the only listed airport player, GMR Airports, which is the world's second largest by capacity. GMR Airports can handle 108 million passengers a year and 80 million are under development.

Yet, it's the 11 largest airport operator by market value, available at a discount to other global listed players. And that's when GMR Airports expects passenger traffic to grow fourfold in the two decades up to 2041.

The GQG's investment in GMR Airports and Adani Enterprises Ltd. (Adani Airports parent) is also a bet on the world's fastest-growing aviation sector. India and Indonesia are expected to be the third and fourth largest aviation markets by 2030, respectively.

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