GVK Power spurts on buzz it may list its airport unit

GVK Power & Infrastructure rose 13.10% to Rs 9.24 at 9:56 IST on BSE on reports the company is likely to file a draft prospectus for an up to $250 million initial public offer of its airport unit soon.

Meanwhile, the BSE Sensex was up 82.96 points, or 0.30%, to 28,058.82.

On BSE, so far 27.12 lakh shares were traded in the counter, compared with an average volume of 10.48 lakh shares in the past one quarter.

The stock hit a high of Rs 9.80 and a low of Rs 8.55 so far during the day. The stock hit a 52-week high of Rs 20.85 on 26 May 2014. The stock hit a 52-week low of Rs 7.75 on 25 March 2015.

The stock had underperformed the market over the past one month till 30 March 2015, falling 18.05% compared with 4.72% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 7.89% as against Sensex's 2.09% rise.

The small-cap company has an equity capital of Rs 157.92 crore. Face value per share is Re 1.

The unit, GVK Airport Developers, operates airports in Mumbai as well as in Bengaluru. It is also developing airports at Bali and Yogyakarta in Indonesia.

GVK is reportedly seeking to benefit from surging travel in India. Passenger traffic in Indian airports was up 11% during April-December 2014, compared with a year earlier, reports suggested.

If the IPO is completed, GVK Airport would be the first airport operator to be listed in India.

The company will reportedly use part of the proceeds to reduce debt and also expand some of the non-aviation infrastructure at its Mumbai and Bengaluru airports.

GVK Power & Infrastructure reported net loss of Rs 209.12 crore in Q3 December 2014 as against net loss of Rs 45.43 crore in Q3 December 2013. Net sales rose 7.73% to Rs 791.92 crore in Q3 December 2014 over Q3 December 2013.

GVK Power & Infrastructure is a leading Indian conglomerate with presence across energy, resources, airports, transportation, hospitality and life sciences sectors.

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