GMR Power Surges 5% as It Acquires Additional Stake in GMR Energy

22 Nov 2023 , 03:19 PM

GMR Power and Urban Infrastructure witness a 5% surge in shares to Rs 42 after acquiring an additional 29.2% stake in subsidiary GMR Energy. The acquisition boosts GMR Power’s stake in GMR Energy from 57.7% to approximately 86.9%, consolidating control.

In the past month, the stock has surged by 22%, outperforming the benchmark Sensex’s 0.8% rise. The acquisition results in the termination of the Shareholders Agreement (SHA) with Tenaga, enabling full consolidation of revenues and earnings of GMR Energy with GMR Power.

GMR Energy, incorporated in 1996, is involved in power project development, operation, maintenance, and electricity-related activities. The September-ended quarter (Q2FY24) reports a 60% YoY drop in GMR Power’s sales to Rs 627 crore. However, the operating profit rises by 89% YoY to Rs 108 crore.

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