GVK Power weakens despite stake buy

GVK Power has ended the day at Rs 50, lower by Rs 1 or 3%, on the BSE.

A total of 5,712,295 shares were traded on the BSE as against the two-week average of 3,329,875.

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(Updated at 0358 pm)

GVK Power and Infrastructure Ltd (GVKPIL) has firmed up after having acquired  L&T Infrastructure Development Projects Ltd's stake of 17 per cent in Bengaluru International Airport Ltd (BIAL) for Rs 686 crore. The stock is trading up by Rs 1 or 2% at Rs 52 on the BSE.

The acquisition, made through GVK Group’s wholly-owned subsidiary, GVK Airport Developers, was priced at Rs 105 per share. The Hyderabad-headquartered infrastructure developer will now hold 29 per cent in BIAL.

Siemens holds the largest stake in BIAL, at 40 per cent, while the Airports Authority of India and Karnataka State Industrial Investment and Development Corporation (KSIIDC), the financing arm of the Karnataka government for infrastructure projects, hold 13 per cent each.