GVK Power & Infra surges on stake sale in Bangalore airport

The company has sold 33% stake in Bangalore International Airport Ltd for Rs 2,149 crore

Shares of GVK Power & Infrastructure were up nearly 6% at Rs 7.10 on the Bombay Stock Exchange after the company announced that its board of directors at the meeting held today has approved sale of 33% stake in Bangalore International Airport Ltd to FIH Mauritius Investments Ltd and Fairfax India Holdings Coporation for a consideration of Rs 2,149 crore.

The stake sale would help reduce the debt burden by about Rs 2,000 crore and would results in saving of interest cost to the extent of Rs 300 crore per annum approximately,  the company said in a release.

The stock opened at Rs 6.80 and touched a high of Rs 7.38. At 1:55pm, over 13.6 million shares were traded on both the stock exchanges.