Mid-cap Infra stock that is into development, operation and maintenance of airports gains marginally after it acquired an additional 11 percent stake in its airport in Hyderabad from Malaysia Airports Holding Berhad and its subsidiaries.
At the day’s closing the shares of GMR Airport Infrastructure were trading at Rs. 53.90 down 0.74 percent from its previous day close price and its market capitalization is Rs. 32,503 Crores.
As per the company’s filing, GMR Airports Limited along with its subsidiaries have entered into a share purchase agreement with Malaysia Airports Holding Berhad(MAHB) and its wholly owned subsidiary, MAHB (Mauritius) Private Limited, to acquire MAHB Group’s minority 11 percent stake in GMR Hyderabad International Airport Limited (GHIAL) for a consideration of USD 100 million.
The transaction, subject to the customary closing conditions is expected to be concluded within a maximum of 135 days from the date of execution of the said share purchase agreement.
GAL currently holds 63 percent of the paid-up capital of GMR Hyderabad International Airport Limited(GHIAL) and post the proposed acquisition, its stake in GHIAL would increase to 74 percent, both Government of Telangana (GoT) and the Airports Authority of India (AAI) hold 13 percent each of the equity stake of GHIAL.
The transaction, subject to the customary closing conditions is expected to be concluded within a maximum of 135 days from the date of execution of the said share purchase agreement.
The company’s results increased by 45.49 percent from Rs. 4,600.72 Crores in FY22 to Rs. 6,693.4 Crores in FY23, accompanied by decreasing losses of Rs 1,023.29 Cr to Rs. 179.26 Cr.
The company reported a return on equity (ROE) of 0.00 and return on capital employed(ROCE) of 5.69 percent, this indicates that the company is not yet generating profits as it is gradually decreasing its losses.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold 59.07 percent stake, the Domestic Institutional Investors hold 4.42 percent and the Foreign Institutional Investors (FII) hold 28.15 percent.
GMR Airports Infrastructure is engaged in development, operation and maintenance of airports along with offering integrated security solutions.
Written by: Bharath K.S
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