What was changed
GVK borrowed heavily to build and run airports, including a stake in Mumbai International Airport worth roughly ₹12,500 crore. By 2020 the group owed about ₹24,500 crore, COVID had emptied its terminals, and its lenders were pressing for repayment.
After failing to raise equity by listing the airports business, GVK accepted Adani's takeover: Adani bought its partners' stakes in February 2021 and converted GVK's own debt into equity, taking control of Mumbai airport by July 2021.
What it achieved
Adani took over Mumbai airport's debt and paid the lenders; GVK stayed solvent and kept its power and roads businesses.
Why it worked
The debt was coming due at the exact moment COVID cut airport cash flows to zero
GVK could not refinance: lenders had lost confidence and an equity raise failed
Adani offered debt takeover plus repayment, the fastest route to clearing the obligations
What can be applied
Selling the prize asset while it still has value can be cheaper than defending it into insolvency.
Aftermath
GVK's vice-chairman said the sale was done to repay loans raised a decade earlier, not under pressure from Adani. The group survived with its remaining businesses, while Adani Airport Holdings became India's largest airport operator.
FOLLOW THE EVIDENCE
The sources
- Adani completes purchase of 23.5% stake in Mumbai International Airport business-standard.com
- Explained: How GVK had to sell Mumbai airport to Adani after initial resistance freepressjournal.in