India-based GVK Power & Infrastructure has reached an agreement to divest a 79.1% stake in its airport business to raise Rs76.14bn ($1.07bn).

The company will use the funds to retire debt obligations and increase its 50.5% stake in Mumbai International Airport (MIAL).

The company will divest its stake in Abu Dhabi Investment Authority (ADIA), Public Sector Pension Investment Board (PSP Investments) and National Investment & Infrastructure Fund (NIIF).

Following the deal, GVK Airport Developers Limited (GVKADL) will retain a 20.9% stake in GVK Airport Holdings Limited (GVKAHL), while the remaining stake will be equally held by the three investors.

In April this year, GVK signed an agreement to divest a 49% stake to ADIA and the NIIF.

The deal is said to be part of the company’s strategy to stop attempts by Adani Group to acquire a stake in MIAL.

Bidvest and ACSA also hold 13.5% and 10% stakes in MIAL respectively. The remaining 26% stake is owned by Airports Authority of India (AAI).

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GVK now plans to purchase an additional 23.5% stake in MIAL to raise its holding to 74% stake.

In July, it received approval from the Competition Commission of India (CCI) to acquire an additional 10% stake held by ACSA Global in MIAL.

The company announced: “With this transaction, MIAL and NMIAL will also benefit from the backing of global infrastructure investors as both airports embark on the next growth phase that would lead to unlocking significant value through real estate development in MIAL and the development of the NMIA.”

Last month, GVK announced plans to invest Rs85bn ($1.19bn) in the construction of the first phase of Navi Mumbai International Airport in the Indian state of Maharashtra.