GMR Airport Infrastructure Ltd announced on Wednesday that the National Investment and Infrastructure Fund (NIIF) had invested Rs 631.24 crore in a subsidiary of GMR Airports. GMR Goa International Airport Limited (GGIAL), a subsidiary of GMR Airports, has secured Rs 631.24 crore in funding from NIIF, the company said on April 26, 2023.

The amount has been used to subscribe for 63,124 compulsory convertible debentures (CCDs) worth Rs 1,00,000 each in GGIAL.

A payment of Rs 631.24 crore was paid to a subsidiary of GMR Airports after GMR Airports announced its financial partnership with NIIF in December 2022.

Under the partnership arrangement, NIIF will invest in the equity capital of GMR Airports’ three airport projects, marking NIIF’s first investment in an airport asset in India.

The three airports include Greenfield International Airport in Mopa, Goa, and Bhogapuram, Andhra Pradesh.

According to the deal details of the financial partnership, NIIF will make a major investment of Rs 631 crore in the form of CCD in GGIAL for the operation and operation of the new airport in Goa.

Last month, GMR Airports Infrastructure announced comprehensive plans for the merger and arrangement of subsidiary GMR Airports and GMR Airports Infrastructure. The company has said that GMR Airports Infra will continue as a listed public entity after the merger.

Saurabh Chawla, the Chief Financial Officer of GMR Group, confirmed to CNBC-TV18 that consolidating group entities involves a 51% subsidiary that operates the airport.

Shares of GMR Airports Infrastructure Ltd were trading at Rs 45 per share, up 0.56%, at 11:12 am on the BSE on Wednesday.