Fairfax India Holdings Ltd. is planning an initial public offering (IPO) for Bangalore International Airport Ltd.(BAIL) with a market valuation of about Rs 30,000 crore ($3.7 billion), reported Bloomberg citing sources privy to the matter.
Fairfax India, the Indian arm of Canadian investment group Fairfax Financial Holdings Ltd. owns a 54 per cent interest in BIAL, making it the majority stakeholder. Siemens Projects Ventures and governments are among the minority investors in Kempegowda International Airport, Bengaluru.
The report said that Fairfax India is working with an adviser on the possible listing that could take place as soon as next year. The source said that this offering may raise between Rs 30,000 crore and Rs 40,000 crore. The IPO could consist of about 75 per cent primary shares and the rest in existing shares.
Details of the potential listing are still changing and Fairfax could decide not to proceed with a share sale, the source added.
Launched in 2008, Bengaluru Airport serves 61 domestic and 14 international destinations. As of June this year, more than 25 crore passengers have visited the airport.
In October this year, Canadian billionaire Prem Watsa-owned Fairfax denied a media report of a $1.5-billion deal about a stake sale of BIAL. Fairfax has said back then that it was not exiting Bengaluru airport, and had 'no interest' in selling its stake. Fairfax has invested over $1-billion investment in the airport, the company's largest investment in India. Fairfax India purchased Bangalore International Airport Ltd back in 2017. The company later increased its shareholding to 54 per cent.
Fairfax India Holdings Ltd has a $7 billion overall investment in India, it intends to quadruple that amount over the next four to five years, the report added.