Fairfax weighs Rs 30,000 crore IPO for Bengaluru Airport

The IPO may consist of about 75% primary shares and the rest in existing shares

By Baiju Kalesh

Fairfax India Holdings Ltd. is considering an initial public offering for Bangalore International Airport Ltd. that could value the asset at about Rs 30,000 crore ($3.7 billion), according to people familiar with the matter.

The Indian arm of Canadian investment group Fairfax Financial Holdings Ltd. is working with an adviser on the potential listing that could take place as soon as next year, the people said. Fairfax India holds a majority stake in the owner of Kempegowda International Airport, Bengaluru.

The Mumbai offering may raise between Rs 3,000 crore and Rs 4,000 crore, they said, asking not to be identified as the information is private. The IPO may consist of about 7 per cent primary shares and the rest in existing shares, one of the people said.

Deliberations are ongoing, details of the listing could change and Fairfax could decide not to proceed with a share sale, the people said. A representative for BIAL couldn’t immediately comment, while Fairfax didn’t immediately respond to calls and emails requesting comment.

Fairfax India owns a 54 per cent interest in BIAL as it built up its shareholding after acquiring its initial stake in 2017. It counts Siemens Projects Ventures and governments among its minority investors, its website shows.

Launched in 2008, BLR Airport has been visited by more than 25 crore passengers as of June this year, according to a recent press release. The airport serves 61 domestic and 14 international destinations, the website shows.

--With assistance from P R Sanjai and Layan Odeh.