
ICICI Bank challenges MIAL's Rs 3,240 crore rights issue over contractual violations
ICICI Bank
has challenged the proposed rights issue of Mumbai International Airport (MIAL) on the grounds that it violates prior contractual agreements and risks diluting lenders' interests, said people with knowledge of the matter. The bank's contention is that the rights issue will dilute the value of shares pledged against loans worth $1.25 billion that had been given to the
GVK Group
, which used to own MIAL. The
Adani Group
took over MIAL from GVK in 2021.
ICICI Bank, acting through its Bahrain branch as facility agent for a consortium of lenders, has filed a suit in the
Bombay High Court
seeking to restrain MIAL from proceeding with the ₹3,240 crore rights issue, according to a copy of the petition filed by the bank early this month and reviewed by ET.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Play War Thunder now for free
War Thunder
Play Now
Undo
Agencies
The bank alleged that the issue breaches the terms of an interim solution undertaking (ISU) and a share pledge agreement signed in 2017, which prohibit any dilution of pledged equity without the lender's consent. The matter is scheduled for hearing on July 21 before justice RI Chagla.
ICICI Bank, GVK and Adani did not respond to ET's queries.
The dispute stems from two loan facilities extended to GVK Coal Developers (Singapore). The first, amounting to $1 billion, was provided in September 2011. The second, of $250 million, was in March 2014, the petition stated.
Bank of Baroda
,
Bank of India
,
Indian Overseas Bank
and
Canara Bank
are among the other lenders involved.
Live Events
These loans were secured by a pledge of 32% equity in GVK Airport Holdings (GVKAHL), representing a 16.16% indirect stake in MIAL. GVKAHL holds a 50.5% stake in MIAL, Adani Airport Holdings holds 23.5%, and the Airports Authority of India has 26%. The rights issue is being offered in a 27:10 ratio. GVKAHL is now part of the Adani Group.
ICICI Bank contends that the proposed rights issue would reduce this pledged stake to about 4.37%, undermining the security provided under the loan agreements.
The rights issue, approved by MIAL's board on June 12, offers 3.24 billion equity shares at `10 each to existing shareholders.
ICICI Bank
says that GVKAHL informed the bank of its decision not to subscribe to issue just five days before what was to have been the offer's closing date of July 5, citing lack of funds. The bank alleges this delay was deliberate and prejudicial to the lenders' interests. The bank also raised concerns that the issue price of Rs 10 per share does not reflect fair market value and is instead the minimum permissible price.
MIAL is not listed. Senior counsel Venkatesh Dhond and Siddharth Ranade, partner of law firm Trilegal, are representing lenders. Senior advocate Vikram Nankani and law firm Rashmikant and Partners are representing some respondents.
The ownership structure of MIAL changed in 2021, when Adani Airport Holdings, a unit of Adani Enterprises, bought 97.97% of GVK Airport Developers, parent of GVKAHL. The bank has sought a permanent injunction against the rights issue and interim relief to prevent any share allotment or action that could affect the pledged equity, the petition stated. It has also asked that any subscription received for the rights issue should be kept in a separate account until the matter is resolved, it added.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Economic Times
28 minutes ago
- Economic Times
India's equity indices fall for fourth consecutive week amid weak earnings
Mumbai: India's equity indices fell nearly 1% on Friday, marking their fourth straight week of losses, as weaker earnings from index heavyweights and subdued sentiment across Asian markets weighed on investor confidence. ADVERTISEMENT The NSE Nifty fell 0.9%, or 225.1 points, to finish at 24,837.00. The BSE Sensex moved 0.8%, or 721.08 points, lower to close at 81,463.09. Both indices declined 0.5% and 0.4%, respectively, over the past five trading sessions. "The fall in the markets today was largely due to bearish earnings by heavyweights like Nestle and Bajaj Finance, which indicate a slowdown in the consumer economy," said Pranay Aggarwal, director and CEO, Stoxkart. "There is also investor nervousness around the India-US trade deal." Bajaj Finance fell almost 5%. Corrective Phase It emerged as the biggest loser on the benchmark Nifty on Friday. Shriram Finance and IndusInd Bank fell 3.6% and 2.6%, respectively. ADVERTISEMENT The Nifty PSU Bank Index dropped 1.7%, while the Bank Nifty shed 0.9%. The Nifty Metal and Nifty IT indices fell 1.6% and 1.4%, respectively. The Nifty Auto Index ended 1.3% Volatility Index, or VIX - the market's fear gauge - gained 5.2% to 11.3 on Friday, indicating traders expect higher risk in the near term. ADVERTISEMENT Elsewhere in Asia, Hong Kong fell 1.1% while Japan and China declined 0.9% and 0.3%, respectively. Taiwan ended marginally lower and South Korea rose 0.2%.At home, the broader market bore the greater brunt of the weaker sentiment with the Nifty Mid-cap 150 and Small-cap 250 indices declining 1.6% and 2%, respectively, on Friday. Out of the 4,154 shares traded on the BSE, 1,061 advanced, while 2,969 declined. Over the past week, the mid-cap index shed 1.6%, while the small-cap index fell 3%. ADVERTISEMENT Technical analysts said that stocks had run up significantly since April, and muted results by index heavyweights led to profit booking after the sharp rally. "Overall, the market has been in a corrective phase in July - initially a time-wise correction that kept the markets in a tight range - but today the index decisively breached the key support level of 24,950, indicating that a price-wise correction is likely in the short term," said Ruchit Jain, head of technical research at Motilal Oswal Financial Services. "The 24,650 level is the next key mark that offers a good buying opportunity." In the last three months, the benchmark Nifty has gained 3.3%, while the Nifty Mid-cap and Small-cap indices have surged 9.2% and 12%, respectively. ADVERTISEMENT Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,980 crore on Friday. Their domestic counterparts purchased shares worth Rs 2,138.6 crore. In July, overseas investors divested Rs 22,288 crore."The benchmark gained significantly between April and June, unlike in prior periods when July typically ended on a positive note," said Jain. "This prior outperformance and the ongoing correction suggest that July is likely to close lower, despite being a seasonally strong month."Jain added that investors could consider buying on dips from a medium-term perspective, as these are corrections within a broader said the tariff on India is unlikely to be higher than that on China or Vietnam, and once the deal is finalised, the markets could rebound. "Until further clarity emerges on the US-India trade deal, the markets are expected to remain sideways due to a lack of direction amid foreign selling," said Aggarwal. "The markets are expected to end lower in July, and this sideways movement could persist into next month."


Hans India
30 minutes ago
- Hans India
Sridhar urges Taiwanese to invest in TG's booming textile sector
Hyderabad: Telangana's Industries and IT Minister, D Sridhar Babu, has extended a cordial invitation to Taiwanese industrialists, urging them to invest in the state's burgeoning textile sector and become integral stakeholders in the 'Rising Telangana' narrative. Highlighting the abundant opportunities available in Telangana compared to other Indian states, the Minister underscored the state's rapid emergence as a formidable player in the textile industry. On Friday, a high-level Taiwanese textile delegation, comprising 11 members and led by Justin Huang, President of the Taiwan Textile Federation (TTF), paid a courtesy visit to the Minister at Dr. B.R. Ambedkar Telangana Secretariat. 'Within a short span, Telangana has made significant strides in the textile sector, positioning itself on par with other leading states,' the Minister stated. He noted that the Gross State Value Added (GSVA) from industries for 2024-25 stands at Rs 2.77 lakh crore, with textiles playing a key role. 'Telangana produces some of the finest quality cotton in India,' he added. Sridhar Babu emphasised that the Kakatiya Mega Textile Park (KMTP), developed with special focus by the state government, has become a 'game-changer.' He explained that KMTP offers integrated, world-class infrastructure — from ginning, spinning, weaving, and processing to garmenting — all in one place. 'Leading companies like Youngone, Kitex, and Ganesha Ecosphere have already invested here,' he confirmed. The park is strategically connected to the Hyderabad–Nagpur–Vijayawada Industrial Corridor and benefits from excellent logistics and transport infrastructure. He pointed out vast opportunities for investment in areas like functional textiles, eco-friendly dyeing, and textile recycling. The Minister also assured the visiting delegation of the Telangana Government's commitment to driving industrial growth through global partnerships. 'We offer customised land parcels, plug-and-play facilities, a skilled workforce, effective leadership, a stable government, and strategic geographic advantage,' he stated. He further noted that sectors such as technical textiles, ESDM (Electronics System Design & Manufacturing), sustainable manufacturing, innovation, and R&D are ideal for collaboration with Taiwanese enterprises. Minister Sridhar Babu also proposed that, should Taiwanese investors come forward, the government would explore setting up a dedicated Telangana–Taiwan Manufacturing Zone and exclusive Textile Clusters. He reaffirmed Telangana's readiness to work closely with the Taiwan Textile Federation for the sector's growth.


India Today
an hour ago
- India Today
Centre clears Rs 29,558 crore for indigenous defence technology development
The Indian government has approved projects worth Rs29,558.66 crore for the Defence Research and Development Organisation (DRDO) over the past three years to strengthen indigenous defence capabilities. The funds are meant for research and development of new defence 2023, 40 projects were sanctioned with a cost of Rs 3,842.71 crore. In 2024, the number increased to 43 projects worth Rs 22,175.49 crore. In 2025 so far, 20 projects worth Rs 3,540.46 crore have been of the key developments is the Kaveri Derivative Engine (KDE), which will power unmanned combat aircraft. Two projects related to this have been approved — Flightworthy Kaveri Dry Engine Development at a cost of Rs 472.42 crore and Technology Demonstration of Kaveri Derivative 'Dry' Engine at Rs 251.17 crore. The government is also taking steps to improve the partnership between the civil and military sectors in defence. Development-cum-Production Partners (DcPPs) are being selected to speed up prototype development and production. Industries are also being involved early in the process to help bring academic research to life through DRDO's Industry Academia Centres of Excellence (DIA-CoE).The Centre for Military Airworthiness and Certification (CEMILAC) is working with the DGCA to create common certification rules for drones used in both civil and military operations. It is also in talks with international agencies like EASA and aircraft companies such as Airbus and Embraer to develop local certification processes for military encourage innovation, DRDO has signed MoUs with defence industrial corridors, opened its testing facilities to private companies, and made its patents freely available to Indian industries. It has also introduced a new policy with zero transfer of technology fees and no royalty for companies supplying to the Indian Armed Forces.- EndsTune InMust Watch