Shares of GVK Power & Infrastructure
gained 8% on Monday after the company inked an agreement to sell 49% stake in its airport subsidiary.
"GVK Airport Developers (GVKADL) and GVK Airport Holdings (GVKAHL), subsidiaries of our Company, have signed a term sheet and exclusivity agreement with the Abu Dhabi Investment Authority (ADIA) and the National Investment & Infrastructure Fund (NIIF) for an investment in new shares in GVKAHL equating to a 49% stake", the company said in a press note after markets hours to the exchanges on Thursday.
The transaction is subject to conclusion of confirmatory due diligence by ADIA and NIIF, agreement on definitive documents and satisfaction of customary closing conditions including regulatory/third party approvals and lender consents.
GVK had initiated a process to identify and select preferred investors to raise capital to reduce debt obligations of up to Rs5,750cr. ADIA and NIIF were selected as the preferred partners by GVK. All proceeds from the proposed transaction will be used by GVK towards retiring debt obligations, the company added.
GVK Power & Infrastructure Ltd's share price is currently at Rs7.90, up by Rs0.58 or 7.92%, from its previous close of Rs7.32 on the BSE.
The scrip opened at Rs7.74 and has touched a high and low of Rs8.05 and Rs7.70, respectively. So far, 72,69,790 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs1,155.97cr.