GVK gains on selling residual BIAL stake to Fairfax

NEW DELHI: Shares of GVK Power and Infra advanced over 3 per cent on Friday after the company said that it has completed a deal to sell residual stake in Bangalore Airport to Fairfax India.

Following the development, the stock gained 3.70 per cent to close at Rs 7.56 on BSE. It opened at Rs 7.70 and touched an intraday high and low of Rs 7.78 and Rs 7.36 respectively, in trade so far.

According to the company's press release, the deal is valued at Rs 1,290 crore.

Commenting on the development, Dr GVK Reddy, Founder Chairman and Managing Director of GVK said, "Since deleveraging is currently our top priority, we decided to part ways with BIAL. However, we would like to reiterate that the Airports sector will continue to be a core focus area for GVK."

"We will now focus on Mumbai as well as Navi Mumbai airport for which we have won the bid and also on selectively evaluating privatisation opportunities," he added.

For the quarter ended March 31, 2017, the company reported total revenue at rs 7.10 crore and net loss of Rs 205.85 crore.