InvestorQ : Can you throw some light on the tussle between Adani Group and GVK Group pertaining to the Mumbai Airport?
Ria Jain made post

Can you throw some light on the tussle between Adani Group and GVK Group pertaining to the Mumbai Airport?

Answer
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Dia Deshpande answered.
2 months ago


It looks like the fight between Adani Group and GVK Group over control of Mumbai airport heads to a resolution. Adani may not acquire a majority stake in MIAL, the airport venture. Currently, GVK Airport Holdings owns 50.5 per cent in MIAL.

Adani has been eyeing control of MIAL for quite some time to get control of the lucrative Mumbai airport. Adani already has the mandate to run airports at Thiruvanathapuram, Jaipur and Guwahati. It is upgrading the airports at Lucknow, Mangaluru and Ahmadabad.

In March 2019, Adani offered to buy Bidvest’s 13.5% stake for Rs.1248 crore which was blocked by GVK, claiming the first right of refusal. GVK failed to make the payment to Bidvest in time, bringing Adani back in the fray once again.

Earlier this year, CBI had charged GVK Group with siphoning off Rs.705 crore and using it to further the interests of its group companies. This is yet to be fully decided.