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GVK Power advances after completing stake sale in Bangalore airport

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& Infrastructure rose 3.29% to Rs 7.53 at 14:14 on after the company said it has completed the sale of residual 10% stake in International Airport.

The announcement was made after market hours yesterday, 13 July 2017.

Meanwhile, the S&P Sensex was down 29.24 points or 0.09% at 32,008.14. The S&P Small-Cap index declined 61.95 points or 0.39% at 15,901.62.

On the BSE, 16.02 lakh shares were traded on the counter so far as against the average daily volumes of 15.43 lakh shares in the past one quarter. The stock had hit a high of Rs 7.78 and a low of Rs 7.36 so far during the day. The stock had hit a 52-week high of Rs 9.22 on 3 July 2017 and a 52-week low of Rs 5.05 on 25 May 2017.

The stock had outperformed the market over the past one month till 13 July 2017, surging 19.9% compared with the Sensex's 3% rise. The stock had also outperformed the market over the past one quarter, advancing 22.11% as against the Sensex's 8.74% rise. The scrip had, however, underperformed the market over the past one year, gaining 7.05% as against the Sensex's 15.18% rise.

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

and Infrastructure (GVK Power) announced the successful completion of the sale of its residual stake of 10% in International Airport (BIAL), held through its subsidiary, Airport Infrastructure Developers (BAIDPL) to Fairfax India Holdings Corporation (Fairfax India) for a consideration of Rs 1290 crore (approximately $200 million).

In March 2017, GVK closed an agreement which was signed during March 2016 with Fairfax India to sell a 33% stake in BIAL. It had retained a 10% stake and the management of BIAL. Subsequently, in June 2017, GVK announced its decision to conclude the sale of this 10% residual stake to Fairfax India, subject to necessary consents and approvals.

Dr. G V K Reddy, Founder Chairman & Managing Director of GVK while speaking on the development said that since deleveraging is currently the management's top priority, it decided to part ways with BIAL. However, the Airports sector will continue to be a core focus area for GVK, he said.

Reddy added that the management will now focus on Mumbai as well as the Navi Mumbai airport for which the company has won the bid and also on selectively evaluating privatization opportunities. Capacity optimization and real estate development will now be the priority areas for the existing Mumbai airport, added Dr. Reddy.

and Infrastructure reported net loss of Rs 205.85 crore in Q4 March 2017, higher than net loss of Rs 105.59 crore in Q4 March 2016. Net sales rose 4.1% to Rs 7.10 crore in Q4 March 2017 over Q4 March 2016.

GVK is a leading conglomerate with presence across energy, airports, transportation, hospitality and life sciences.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 14 2017. 14:18 IST