GMR Airports buys Fraport's shares, raises stake in Delhi airport to 74%

India's GMR Airports Infrastructure said on Monday it increased its stake in the main airport in New Delhi to 74 per cent, by buying out Frankfurt Airport operator Fraport's 10 per cent interest in a deal worth $126 million.

The Airports Authority of India (AAI) will continue to hold its 26 per cent stake in Delhi International Airport Ltd (DIAL), one of the country's biggest and busiest airport, GMR said.

The deal comes just over a month after heavy rainfall caused the airport's roof to collapse killing one person and shutting down a busy domestic terminal.

GMR, which also owns stakes in Hyderabad's Rajiv Gandhi International Airport and Goa's Manohar International Airport, said the deal was part of its strategy to strengthening its presence in core assets.

Fraport said the deal, which it expects to close in 180 days, will help it reduce its debt. It said the AAI and GMR shareholders have to approve the deal.

GMR's shares closed down 0.2 per cent, while Fraport's were up 1 per cent.

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Savio D'Souza)