A partnership between Tata Group, Singapore sovereign wealth fund GIC and SSG Capital Management, will acquire a 45% stake in GMR Airports, a unit of GMR Infrastructure, for Rs80bn ($1.2bn).

The deal will see the consortium partners pay Rs10bn ($145.13m) as an equity infusion in GMR Airports while the remaining Rs70bn ($1.01bn) will be paid towards the acquisition of its equity shares from the listed entity along with its subsidiary.

Following completion of the transaction, Tata Group will own 20% in the airport unit, while GIC will hold 15% and SSG will own a 10% stake.

The Tata-GIC-SSG consortium clinched the deal, beating Japanese conglomerate Mitsubishi, which was also engaged in negotiations with GMR.

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“GMR Infrastructure Ltd announces Proposed Investment of Rs80bn ($1.2bn) by TATA Group, GIC and SSG Capital Management in its Airports business.”

In a stock exchange filing, GMR Infrastructure said: “GMR Infrastructure Ltd announces Proposed Investment of Rs80bn ($1.2bn) by TATA Group, GIC and SSG Capital Management in its Airports business.”

The deal, which also marks Tata Group’s foray into the airport business, values GMR Airports at Rs180bn ($2.61bn).

Tata Group, which owns two local airlines, became the latest entrant into the Indian airport sector after Adani Group won bids to operate six local airports last month.

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GMR Infrastructure has been offloading assets to pay off liabilities, which stood at $2.9bn at the end of December last year.

GMR Airports manages airports in Hyderabad and Cebu (Philippines), and is developing greenfield airports in Goa (India) and Crete, Greece.

The company has also secured the rights to build a new airport in Goa in 2017 and secured the privatisation contract for the Nagpur airport in October last year. It also secured a contract to develop and operate an airport in Crete, Greece, in 2017.