GVK Power rallies 13% as peer bidders pull out of Navi Mumbai airport bidding process

NEW DELHI: Shares of GVK Power & Infrastructure saw an over 13 per cent spike in Wednesday’s trade after all the three peers shortlisted to build the much-delayed Rs 16,000 crore Navi Mumbai Airport said they were to pull out from the bidding process.

The stock climbed 13.22 per cent to hit a high of Rs 6.25 on BSE in high-volume trade. As many as 16.70 lakh shares changed hands on the counter against a two-week daily average of 3.18 lakh shares.

According to an ETRealty report, there were concerns over incomplete resettlement of families from the area and zero pre-development work. Besides, there were certain bid document issues.

The stipulated 42-month time to complete the project is too short, given the conditions, ETRealty quoted the bidders as saying.

GMR Infrastructure, Tata Realty & Infrastructure and the Hiranandani Group said they won't be able to put in financial bids, likely leaving GVK Power & Infrastructure-led Mumbai International Airport (MIAL), the operator of Mumbai airport, as the only qualified bidder.

One of the contracts was awarded to a GVK joint venture, which GMR claims was a conflict of interest. There were other issues as well.

Earlier, the last date for submission of the bid document was extended by two months to January 9.