GMRAIRPORT Secures Rs 415 Cr Delhi Airport Cargo City Deal ✈️
Hey finance enthusiasts! 👋 We’ve got some exciting news from the aviation infrastructure space. GMR Airports Limited, trading under the symbol GMRAIRPORT, has just announced a major win that could significantly boost its future prospects.
The company received a Letter of Intent to Award (LOIA) from Delhi International Airport Limited (DIAL), which is actually an Indian subsidiary of GMR Airports itself. This LOIA is for a massive project: to finance, design, develop, construct, operate, manage, and maintain the Cargo City at the Indira Gandhi International Airport (IGI) in New Delhi.
Think about it – a state-of-the-art cargo and logistics hub at one of India’s busiest airports! 📦 This isn’t just a small gig; the project spans a total of 50.5 acres, with an option to expand by another 10 acres in the future. That’s a lot of space for handling goods and boosting trade.
What’s the deal’s duration? It’s a long-term commitment, initially running up to the year 2036, with a fantastic option to extend for an additional 30 years! Talk about long-term vision and stable revenue streams. 📈
Financially, the project operates on a revenue share payment model to DIAL, based on the Cargo City’s business performance year-on-year. Plus, there’s a Minimum Monthly Guarantee payable by GMR Airports to DIAL, which adds a layer of financial security. For the initial period up to 2036, this project is estimated to bring in an aggregate amount of Rs. 415.74 crores.
It’s worth noting that while this is a transaction with a subsidiary (making it a related party transaction), the company has confirmed it was conducted on an ‘arm’s length basis’ and all necessary approvals were duly obtained as per SEBI Listing Regulations and Companies Act, 2013. Transparency is key! ✅
This announcement highlights GMR Airports’ continued focus on expanding its core business and leveraging its existing assets. A robust cargo and logistics facility at a major international airport is a strategic move, positioning the company for growth in the ever-expanding e-commerce and global trade sectors.
Keep an eye on GMRAIRPORT as this exciting project takes flight! 🚀
source: Corporate Announcement
Join our Telegram for instant updates!