On Friday, Midcap airport infrastructure stock rose 14 percent and hit its 52-week high of Rs 70.4 from its previous close of Rs 61.7 after a block deal of 76 crore equity shares of the company.
According to a CNBC TV18 report, GQG Partners is a likely buyer in today’s block deal in GMR Airports Infrastructure Ltd, a global fund and a key investor in Adani Group companies.
In addition to GQG, other long-only funds are buyers in the transaction. The seller in this transaction is most likely a non-promoter entity.
GMR Airports Infrastructure, which develops, operates, and maintains airports, believes that the first and third quarters are typically strong in terms of business growth. Based on this history, the company anticipates record passenger traffic and significant business growth in the current quarter.
Furthermore, GRK Babu, GMR Airports’ Chief Financial Officer (CFO), revealed that the airport development and operating company expects to reach a significant milestone in passenger traffic, aiming for a remarkable 70 million passengers.
The company operates two of India’s largest airports, Delhi and Hyderabad, which handled 25-28 percent of all passenger traffic in the country over the last decade.
Looking forward to GMR Airports Infrastructure Ltd’s financials, the net revenue increased by 30 percent year over year, from Rs 1,583 crore in Q2FY23 to Rs 2,063 crore in Q2FY24.
In addition, the company’s net loss decreased by 2.6 percent year over year, from a net loss of Rs 197 crores in Q2FY23 to a net loss of Rs 190 crores in Q2FY24.
However, the company remains in net loss, and the ratios like return on equity, net profit margin, and debt-to-equity ratio of the company are also in negative.
GMR Airports Infrastructure Limited is a midcap company with a market capitalization of Rs 41,708 crores. The company’s share price has risen by 70 percent year to date and by 64 percent during the previous six months.
The promoters own 59 percent of the company, with foreign institutional investors owning 28 percent, the general public owning 8.7 percent, and domestic institutional investors owning 4.3 percent.
GMR Infrastructure is primarily involved in airport development, maintenance, and operation, power generation, coal mining and exploration activities, highway development, development, maintenance, and operation of special economic zones, and construction business, including Engineering, Procurement, and Construction (EPC) contracting.
Written by Sriram KV
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