GMR Infra hits 52-week high amid volatility on divesting stake in Istanbul airport

GMR Infrastructure rose 3.49% to Rs 25.20 at 10:55 IST on BSE after the company said that it has signed a definitive agreement to divest its stake in Istanbul airport.

The announcement was made after market hours on Monday, 30 December 2013.

Meanwhile, the S&P BSE Sensex was up 66.22 points or 0.31% at 21,209.23

On BSE, so far 3.34 lakh shares were traded in the counter as against average daily volume of 7.65 lakh shares in the past one quarter.

The stock was volatile. It gained as much as 3.9% at the day's high of Rs 25.30 so far during the day, which is also its 52-week high. It rose as much as 0.2% at the day's low of Rs 24.40 so far during the day. The stock had hit a 52-week low of Rs 10.65 on 6 August 2013.

The stock had outperformed the market over the past one month till 30 December 2013, rising 19.07% compared with the Sensex's 1.69% rise. The scrip had also outperformed the market in past one quarter, gaining 12.21% as against Sensex's 9.10% rise.

The mid-cap company has equity capital of Rs 389.24 crore. Face value per share is Re 1.

GMR Infrastructure (GMR) after market hours on Monday, 30 December 2013 said that the company has signed a definitive agreement with Malaysian Airports Holding Berhard (MAHB) to divest its 40% equity stake in Istanbul Sabiha Gokcen International Airport (ISGIA) and its operating company LGM Tourism (LGM) for an amount of euro 225 million (i.e. approximately Rs 1910 crore), subject to certain adjustments. Definitive agreements have been signed subsequent to the exercise of Right of First Refusal (ROFR) by MAHB under the existing shareholders agreement of ISGIA, on 23 December 2013, GMR said.

GMR said that the transaction is subject to customary closing conditions including the approval of the relevant government authorities and the project lenders to ISGIA.

Commenting on the transaction, G M Rao, Chairman, GMR Group said, This transaction is yet another evidence of GMR Group's ability to implement appropriate strategy to face the challenges of changing times. We at GMR Group continue to focus on creating liquidity and enhance value by effective portfolio management under our ALAR (Asset Light Asset Right) strategy. The efforts of the Group taken in recent times shall strengthen our balance sheet.

ISGIA is one of the world's fastest-growing airports. It currently hosts more than 58 different carriers covering over 125 destinations. The consortium of Limak Holidng, GMR Group and MAHB was selected as the preferred bidder for upgrading and maintaining the airport in July 2007. The airport's new terminal was commissioned in October 2009, 12 months ahead of schedule. LGM undertakes the operation of non-zero services at the airport such as hotel, food & beverages, and lounge. GMR's equity investment at ISGIA is around euro 71.6 million.

GMR Infrastructure reported a consolidated net loss of Rs 393.05 crore in Q2 September 2013, higher than net loss of Rs 179.30 crore in Q2 September 2012. Net sales rose 1.1% to Rs 2397.21 crore in Q2 September 2013 over Q2 September 2012.

GMR Infrastructure is a global infrastructure major with interests in airports, energy, highways and urban infrastructure sectors.

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