GMR Airports Q1 Review- A Simplified Corporate Structure; Tariff Order For Delhi Awaited: ICICI Securities

ICICI Securities Report

GMR Airports Infrastructure Ltd. deal with strategic investor has reached its conclusion with strategic investor now holding shares of the listed entity. This will also lead to simplification of group structure.

Grupo ADP, the strategic investor, had invested in February 20 in the subsidiary of the listed company. Also, the existing FCCB from KIA has been converted into equity. Total share capital being issued has increased from Rs 6 billion to Rs 10.5 billion. As a result, market cap of listed entities is now close to Rs 1 trillion.

In Q1 FY25, traffic grew 7% YoY, a tad lower than the recent growth trajectory. We believe GMR Airports should be a profitable entity in FY26E with new tariff order likely by FY25-end. We maintain 'Reduce' on expensive valuations with target price of Rs 85 (versus Rs 75 earlier).

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