GVK Power surges 6% as company receives approval for 33% sale in BIAL

NEW DELHI: Shares of GVK Power climbed nearly 6 per cent in Monday’s trade after the company informed stock exchanges that it has obtained all the necessary approvals for the sale of 33 per cent stake in Bangalore International Airport Limited (BIAL) to FIH Mauritius Investments and Fairfax India Holdings Corporation.

“We reiterate that our primary focus is on deleveraging our balance sheet, and all proceeds from the stake sale shall be used to bring down our debt obligations to out lenders. We look forward to partner with Fairtax and working with all the stakeholders in developing the Kempegowda international airport through its next phase of expansion,” said company Chairman and Managing Director, GVK Reddy.

Following the development, the stock jumped 5.84 per cent to hit a high of Rs 6.16 on BSE. At this price, the stock was trading at 0.7 times its book value.

Post divestment, GV Sanjeev Reddy would continue to be managing director of BIAL and GVK Reddy as co-chairman of the company, the BSE filing said.