Airports Authority of India (AAI) is seeking a higher valuation ahead of a proposed IPO (PTI/Economic Times/Business Standard, 26-Mar-2011). AAI is reportedly not pleased with the INR200 billion (USD4.5 billion) valuation made by KPMG. AAI reportedly believes it has a minimum valuation of INR800 billion (USD17.9 billion). "KPMG did the valuation. They did it once without strong business plan. I think our valuation will be close to INR 80,000 crore. KPMG did the valuation taking into account our land assets. Without strong business plan, valuation will not be high," said AAI chairman VP Agrawal. State-owned AAI is the largest airport developer in India. KPMG was appointed in 2009 by the government to value the organisation prior to an IPO. Mr Agrawal stated the AAI is seeking government approval for corporatisation and it may take a year before an IPO can be conducted. "Corporatisation of AAI is a good idea. We did our internal evaluation. And you know AAI is an authority. We have to go to the government again. Seek necessary permission for corporatisation. Seek business plans. Once the Government gives those clearances, then we will go for it. We are in the process. It may take one more year," Mr Agrawal said.
AAI seeks higher valuation ahead of proposed IPO
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