Shares of GMR Infrastructure rallied over 5 per cent in intra-day trade on the Bombay Stock Exchange, in an otherwise weak market on Friday, after the company sold its entire 47.62 per cent stake in GMR Chhattisgarh Energy to Indian billionaire Gautam Adani-led Adani Power.
In a statement, GMR Infrastructure on Thursday said it has entered into a definitive agreement with Adani Power to sell its entire 47.62 per cent stake in GMR Chhattisgarh Energy (GCEL), held by its wholly-owned subsidiary, GMR Generation Assets Limited (GGAL).
Boosted by the development, GMR Infra share price gained as much as 5.54 per cent to hit an intra-day high of Rs 15.98 after opening higher at Rs 15.85 apiece on the BSE. The stock also saw spurt in volume trade with 11.51 lakh shares that changed hands over the counter as compared to two-week average of 7.45 lakh shares on the BSE.
On the National Stock Exchange, stock of GMR Infrastructure was trading 2.98 per cent higher at Rs 15.55 per share. The scrip hit an intra-day high of Rs 16.05 after opening higher at Rs 15.80 versus previous close level of Rs 15.10.
As on March 31, 2019, the Chhattisgarh plant had an outstanding debt of Rs 5,926 crore. Following the stake sale, GMR Infrastructure's profitability is expected to improve significantly considering GIL consolidated profit for FY19 was adversely impacted by Rs 516 crore on account of Chhattisgarh Power Plant, it said.
In a press release on Friday, GMR Infrastructure said that it has executed a share subscription and purchase agreement with TRIL Urban Transport, a Tata Group company, for a proposed investment of Rs 8,000 crore in GMR Airports.
The proposed investment amount of Rs 8,000 crore will consist of Rs 1,000 crores equity infusion in GAL Rs 7,000 crore towards purchase of GAL's equity shares from GIL and its subsidiaries.
"The company along with its affiliates and the Investors had signed a binding term sheet in respect of the transaction on March 26, 2019, and execution of definitive documents is in continuation of the same," GMR infra said in the exchange filing.
Meanwhile, the BSE benchmark Sensex was trading at 39,792.01, down by 116.05 points or by 0.29 per cent.
Edited by Chitranjan Kumar
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