Mumbai International Airport Limited (MIAL), in which GVK retains a 50.5% stake has come under the radar of the Ministry of Corporate Affairs (MCA) as per a new update. A GVK spokesperson has said that the Ministry has asked for certain details and and informations from the company and the company has cooperated with the ministry in normal fashion.
GVK’s Other Companies Remain Out of Questions
The GVK spokesperson has also said that GVK’s other companies have not received any such communication from the ministry and that MIAL is the only project that MCA seems to be drawn to right now. The company representative also said that the corporation is not aware of any whistleblower complaint to MCA which could have resulted in MCA asking for this information.
GVK Looking to Raise More Money from Private Equity Investors
As per the sources in the aviation industry, this new communication from MCA to GVK comes in a time when the company is looking towards debt restructuring options. As per these sources, GVK is looking to get new investors onboard, mainly private equity who would can take up substantial stake in the airport holding company which would help GVK in pruning debt.
It is also crucial to note that MIAL remains one of the most successful projects by GVK. Whereas, its other business verticals have been facing some challenges. As per the data available on the airport’s finances, MIAL made a profit of Rs 35.4 crore in 2017/18 as compared to the loss of Rs 89.7 crore in the year before that. The growth has happened both in the non-aero and cargo sector, helping the airport’s finances.