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GVK Power jumps as subsidiary settles dispute with HDIL

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Capital Market
Last Updated : Sep 19 2016 | 3:28 PM IST

GVK Power & Infrastructure surged 10.14% to Rs 7.17 at 14:51 IST on BSE after the company's subsidiary settled the dispute with HDIL related to the slum rehabilitation activities near the Mumbai International Airport.

The announcement was made during trading hours today, 19 September 2016.

Meanwhile, the S&P BSE Sensex was up 78.67 points, or 0.28%, to 28,677.70

On BSE, so far 24.99 lakh shares were traded in the counter, compared with average daily volume of 7.79 lakh shares in the past one quarter. The stock hit a high of Rs 7.28 and a low of Rs 6.43 so far during the day. The stock hit a 52-week high of Rs 9.77 on 24 November 2015. The stock hit a 52-week low of Rs 4.13 on 6 June 2016. The stock had outperformed the market over the past 30 days till 16 September 2016, rising 9.05% compared with 1.69% rise in the Sensex. The scrip also outperformed the market in past one quarter, rising 10.9% as against Sensex's 7.41% rise.

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

Shares of Housing Development and Infrastucture (HDIL) slipped 0.73% to Rs 88.45. GVK Power and Infrastructure said the company's subsidiary Mumbai International Airport (MIAL) has settled the dispute with realty firm HDIL related to the slum rehabilitation activities near the Mumbai International Airport. MIAL and HDIL have signed a settlement agreement dated 8 September 2016 vide which they have irrevocably and unconditionally withdrawn all their respective claims and counter- claims against each other, GVK Power and Infrastructure said.

It may be recalled that MIAL had entered into an agreement with HDIL on 15 October 2007 for implementation of a slum rehabilitation project at Chhatrapati Shivaji International Airport (CSIA). However, due to disputes between MIAL and HDIL, the agreement was terminated by MIAL on 6 February 2013. HDIL challenged the termination of the agreement, invoked the arbitration clause and moved a petition before the Bombay High Court. Considering that considerable time has lapsed from the time the proceedings commenced, MIAL and HDIL have held discussions on various issues to put an end to the ongoing arbitration and have arrived at an amicable settlement.

GVK Power & Infrastructure reported net loss of Rs 51.04 crore in Q1 June 2016, higher than net loss of Rs 3.09 crore in Q1 June 2015. Total income rose 6.11% to Rs 16.85 crore in Q1 June 2016 over Q1 June 2015.

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

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First Published: Sep 19 2016 | 3:04 PM IST

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