GVK Power shares gain on asset sale plans

Jun 27 2014, 12:41 IST
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According to reports, GVK Power is in talks with 4-5 investors to sell stake in airport business and Hancock mining business. According to reports, GVK Power is in talks with 4-5 investors to sell stake in airport business and Hancock mining business.
SummaryGVK Power has said it is exploring options to reduce its debt by equity sale in some of its businesses.

Shares of GVK Power & Infrastructure Ltd today gained ground after the company said it is exploring options to reduce its debt by equity sale in some of its businesses.

The stock was up 1.4 per cent at Rs 18.65 in the mid-day trade after rising to as high as Rs 19 in the morning trade at the BSE.

GVK shares had gained sharply yesterday also and had hit its upper circuit limit of Rs 18.45 after reports surfaced that the company was in talks with 4-5 investors to sell stake in airport business and Hancock mining business in few months.

Clarifying its position with the stock exchanges, GVK said that the company was exploring various options for reducing some of its debt.

"An option that is being looked at is, raising equity at the Airport Holding Company, to retire the debt raised for the airport acquisition. The Company is in discussion with a few investors in this matter.

"The company is also exploring the possibility to bring in an equity investor(s) into Hancock Infrastructure Pvt Limited, which is a holding company, for the Rail and Port Projects in Australia," it said.

GVK, however, said the discussions were at a preliminary stage and no further details can be divulged at this stage.

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