GVK Power extends rally on stake hike in Mumbai Airport; up 61% in one week

The stock rallied 16 per cent to Rs 8.59, after the company announced that GVK Airport Holdings will acquire an additional 13.5 per cent stake in Mumbai International Airport from Bidvest Group.

SI Reporter  |  Mumbai 

MIAL
Mumbai Airport

Shares of rallied 16 per cent to Rs 8.59 apiece on the in intra-day trade on Monday, after the company announced that GVK Airport Holdings will acquire an additional 13.5 per cent stake in Ltd (MIAL) from South Africa's Group for Rs 1,247.40 crore ($175 million).

GVK Airport Holdings, a step down subsidiary of GVK Power & Infrastructure, has exercised its right, under “Right of First Refusal” in terms of the shareholders agreement dated 4th April 2006.

The Hyderabad-based GVK group informed the exchanges on Saturday that it would acquire 162 million shares, constituting 13.5 per cent of the total capital of MIAL, from at the rate of Rs 77 per share. The Rs 1,247-crore deal for Bidvest’s 13.5 per cent stake will increase GVK’s share in MIAL to 64 per cent.

“Upon completion of this acquisition, the equity shareholding of the GVK group will increase to 64 per cent from the existing 50.5 per cent of the total paid-up share capital of MIAL,” the company stated in its filing.

In the past one week, the stock of GVK Power & Infra soared 61 per cent from the level of Rs 5.32, as compared to a 1 per cent rise in the S&P It touched a 52-week low of Rs 5.05 on February 18, in intra-day trade.

At 01:42 pm, GVK Power & Infra was trading 9 per cent higher at Rs 8.05, against 0.51 per cent gain in the benchmark index. The trading volumes on the counter jumped more than three-fold with a combined 17.81 million equity shares changed hands on the and so far.

First Published: Mon, February 25 2019. 13:49 IST