GVK Power jumps over 5% on selling residual stake in Bangalore airport

NEW DELHI: Shares of GVK Power & Infrastructure climbed over 5 per cent on Monday after the company informed stocks exchanges that it has sold its residual 10 per cent stake in Bangalore International Airport to Fairfax India Holdings for Rs 1,290 crore.

In a filing to BSE, the company said that the move will help it reduce debt burden and focus on Mumbai and Navi Mumbai airports.

Following the development, the stock surged 5.72 per cent to close at Rs 6.28 on BSE.

“Our immediate focus will now be on Mumbai and Navi Mumbai airports and on selectively evaluating privatisation opportunities. The reduced debt burden gives us flexibility and releases management bandwidth to focus on these projects. Capacity optimisation and real estate development will be the key focus areas for the existing Mumbai airport,” said GVK Reddy, founder chairman & managing director at GVK Power.

Reddy said that the government's focus on developing the aviation sector also presents attractive growth opportunities and that his company was evaluating all such prospects.

In March 2017, GVK closed a deal which was signed during March 2016 with Fairfax India to sell a 33 per cent stake in BIAL.

It had retained a 10 per cent stake and the management of BIAL.