GVK Power up over 6% as company to sell stake in Bangalore Airport

MUMBAI: Shares of GVK Power and Infrastructure surged by over 6 per cent today as the company is selling 33 per cent of its stake in Bangalore International Airport Ltd to Fairfax India for Rs 2,149 crore, a deal that will trim the group's debt burden by more than Rs 2,000 crore.

The stock soared 6.43 per cent to settle at Rs 7.12 on BSE. In intra-day, the stock climbed 10.31 per cent to Rs 7.38.

At NSE, shares of the company jumped 5.97 per cent to close at Rs 7.10.

On the volume front, 28.20 lakh shares of the company changed hands at BSE and over one crore shares were traded at NSE during the day.

GVK Power & Infrastructure today said it would divest 33 per cent stake in BIAL to Fairfax India Holdings Corp through their wholly-owned subsidiaries in Mauritius for an aggregate investment of Rs 2,149 crore.

The transaction, expected to be completed by mid-2016, would also help the diversified entity save around Rs 300 crore annually on interest costs.

Bangalore International Airport Ltd (BIAL) owns and operates the Kempegowda International Airport Bengaluru. The airport started operations in May 2008.

In BIAL, GVK Group holds 43 per cent stake, Siemens Project Ventures GmbH 26 per cent and Flughafen Zurich AG Ltd 5 per cent while state-owned entities Airport Authority of India and Karnataka State Industrial Investment & Development Corporation Limited hold 13 per cent each.