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GMR Infra gains after winning arbitration against Government of Maldives

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Capital Market
Last Updated : Oct 29 2016 | 12:01 AM IST

GMR Infrastructure rose 2.50% to Rs 13.95 at 12:34 IST on BSE after the company said its arm won an arbitration against Government of Maldives.

The announcement was made after market hours yesterday, 27 October 2016.

Meanwhile, the BSE Sensex was down 6.45 points, or 0.02%, to 27,909.45.

On BSE, so far 32.09 lakh shares were traded in the counter, compared with average daily volume of 19.04 lakh shares in the past one quarter. The stock hit a high of Rs 14.40 and a low of Rs 13.90 so far during the day. The stock hit a 52-week high of Rs 18.60 on 3 December 2015. The stock hit a 52-week low of Rs 9.84 on 11 February 2016. The stock had outperformed the market over the past 30 days till 27 October 2016, falling 1.02% compared with 1.33% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 4.89% as against Sensex's 0.48% decline.

The mid-cap company has equity capital of Rs 603.59 crore. Face value per share is Re 1.

GMR Male International Airport (GMIAL), a subsidiary of GMR Infrastructure, announced that it has been awarded compensation of approximately $270 million by the 3 member international arbitral tribunal. The compensation covers the debt, equity invested in the project along with a return of 17% and also termination payments and legal costs. The compensation is net of taxes that GMIAL may be required to pay in the Maldives.

GMIAL had entered into a concession agreement with Government of Maldives (GoM) and Maldives Airport Company (MACL) for modernization and operation of Ibrahim Nasir International Airport (INIA) in 2010. The Concession Agreement was wrongfully repudiated by the Government of Maldives and Maldives Airport Company Limited on 29th November 2012 alleging that the same was void abinitio. After detailed further proceedings, the tribunal has issued its final order whereby it has awarded compensation to GMIAL.

Earlier in June 2014, the arbitration tribunal had held that GoM and MACL had wrongfully repudiated the concession agreement of GMIAL and that they were jointly and severally liable in damages to GMIAL for loss caused.

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GMR Infrastructure reported net loss of Rs 123.06 crore in Q1 June 2016, higher than net loss of Rs 1.33 crore in Q1 June 2015. Net sales rose 318.3% to Rs 67.98 crore in Q1 June 2016 over Q1 June 2015.

GMR Group is a leading global infrastructure conglomerate with interests in airports, energy, transportation and urban infrastructure.

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First Published: Oct 28 2016 | 12:29 PM IST

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