GVK Power & Infrastructure surged 4.47% to Rs 6.08 at 10:55 IST on BSE after the company said it has divested 33% stake in Bangalore International Airport to Fairfax India Holdings Corporation.
The announcement was made after market hours on Friday, 24 March 2017.Meanwhile, the S&P Sensex was down 145.51 points, or 0.49% at 29,275.89. The S&P BSE Small-Cap index was up 13.19 points, or 0.09% at 14,090.80.
On the BSE, 5.55 lakh shares were traded on the counter so far as against the average daily volumes of 10.14 lakh shares in the past one quarter. The stock had hit a high of Rs 6.16 and a low of Rs 5.89 so far during the day.
The stock had hit a 52-week high of Rs 7.70 on 14 February 2017 and a 52-week low of Rs 4.13 on 6 June 2016. The stock had underperformed the market over the past one month till 24 March 2017, declining 10.05% compared with the Sensex's 1.83% rise. The scrip had also underperformed the market over the past one quarter advancing 5.63% as against the Sensex's 12.98% rise.
The small-cap company has equity capital of Rs 157.92 crore. Face value per share is Re 1.
GVK Power & Infrastructure said that it has divested 33% of its stake in Bangalore International Airport Limited (BIAL) from its wholly owned subsidiary, Bangalore Airport & Infrastructure Developers (BAIDPL) to Fairfax India Holdings Corporation, through its wholly-owned subsidiary in Mauritius, for an aggregate investment of Rs 2202 crore.
Dr GVK Reddy, founder Chairman and Managing Director, GVK, said that the company's primary focus is to deleverage its balance sheet, and all proceeds from this stake sale shall be used to reduce debt. The company looks forward to partnering with Fairfax and working with all the stakeholders in developing the Kempegowda International Airport through its next stage of expansion.
GVK Power & Infrastructure reported net loss of Rs 0.71 crore in Q3 December 2016, as against with net loss of Rs 6.80 crore in Q3 December 2015. Net sales rose 4.2% to Rs 7.12 crore in Q3 December 2016 over Q3 December 2015.
GVK is a leading Indian conglomerate with diversified interests across various sectors including energy, resources, airports, transportation, hospitality and life sciences.
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