GMR Infra gains after submitting damages claim against Govt. of Maldives

GMR Infrastructure rose 0.75% to Rs 20.25 at 12:45 IST on BSE after the company said GMR Male' International Airport submitted $803 million damages claim against Government of Maldives and Male Airports Company.

The company made the announcement during market hours today, 21 November 2014.

Meanwhile, the S&P BSE Sensex was up 199.46 points or 0.71% at 28,267.02.

On BSE, so far 4.74 lakh shares were traded in the counter as against average daily volume of 29.36 lakh shares in the past one quarter.

The stock hit a high of Rs 20.50 and a low of Rs 19.90 so far during the day. The stock had hit a 52-week high of Rs 38.30 on 10 June 2014. The stock had hit a 52-week low of Rs 17.20 on 30 September 2014.

The stock had underperformed the market over the past one month till 20 November 2014, falling 8.01% compared with the Sensex's 6.2% rise. The scrip had also underperformed the market in past one quarter, declining 23.43% as against Sensex's 6.66% rise.

The mid-cap has an equity capital of Rs 436.13 crore. Face value per share is Re 1.

GMR Male' International Airport submitted $803 million damages claim for wrongful repudiation of the Concession Agreement for Maldives International Airport. GMR Male' International Airport (GMIAL), a subsidiary of GMR Infrastructure (GMR), entered into a Concession Agreement with Government of Maldives (GoM) and Maldives Airport Company Limited (MACL) for modernization and operation of Ibrahim Nasir International Airport (INIA) in 2010. The said Concession Agreement was wrongfully repudiated by GoM and MACL and on 29th November 2012 arbitration proceedings were initiated by GoM and MACL themselves seeking a declaration that the Concession Agreement was void ab initio. The Arbitral Tribunal, by its Award dated 18th June 2014, ruled that the said Concession Agreement was valid and binding and that GoM and MACL were jointly and severally liable in damages to GMIAL for loss caused by their wrongful repudiation of the Concession Agreement.

Following the aforesaid Award, GMIAL has submitted its claim for damages amounting to $ 803 million (Rs 4987 crore). In addition, a plea for award of further damages for loss of reputation caused to GMR as a consequence of wrongful repudiation of the Concession Agreement has also been made to the Arbitral Tribunal, the quantification of which is subject to expert evidence. It is to be noted that the arbitration proceedings are private and confidential, however the company is disclosing the above information in conformity with the regulatory requirements.

GMR Infrastructure also said it is proposing, subject to market conditions and other considerations, a rights issue of its equity shares and has filed a Draft Letter of Offer with SEBI and the Stock Exchanges.

GMR Infrastructure reported consolidated net loss of Rs 689.71 crore in Q2 September 2014 as compared with consolidated net loss of Rs 380.24 crore in Q2 September 2013. Total income rose 9.7% to Rs 2783.22 crore in Q2 September 2014 over Q2 September 2013.

GMR Infrastructure a part of GMR Group is the infrastructure holding company formed to fund the capital requirements of various infrastructure projects across the sectors. It undertakes the development of the infrastructure projects through its various subsidiaries.

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