Fairfax India Holdings, the Indian arm of the Canadian investment group Fairfax Financial Holdings, is reportedly weighing an initial public offering (IPO) for Bangalore International Airport Limited (BIAL), according to a Bloomberg report.

The flotation, if materialised, would value the entity at Rs300bn ($3.7bn).

Citing people privy to the development, the news agency said that Fairfax India, which holds a controlling stake in Kempegowda International Airport in Bengaluru city, located in the Indian state of Karnataka, is working with an adviser on the plan.

The potential IPO could take place as soon as next year.

It may include around 75% primary shares and the remainder in existing shares, with sources expecting it to fetch Rs30bn to Rs40bn.

Discussions are said to be currently underway, though the IPO details could change.

Fairfax may even decide not to go ahead with the listing, the people said.

In 2017, the firm purchased its initial stake in the airport.

Fairfax India picked a further 6% stake in BIAL from Siemens Project Ventures for Rs4.5bn ($67m) in May 2018.

Currently, Fairfax India has a 54% stake in BIAL.

In January 2001, BIAL was incorporated to build, own and run the airport under a 60-year concession. 

Private promoters own a 74% stake in BIAL, while the remaining 26% interest is held by the Government, according to the company website.