GMR Infra Demerger: Shares surge almost 7%- whats driving the stock? Zee Business analyst explains
GMR Infra Demerger: The shares of airport services company GMR Infrastructure are in action on Monday, as the stock jumped almost 7 per cent to Rs 49 per share on the BSE intraday, which is also near to its 52-week high of Rs 49.15 per share touched on January 5, 2022.
The shares of airport services company GMR Infrastructure are in action on Monday, as the stock jumped almost 7 per cent to Rs 49 per share on the BSE intraday, which is also near to its 52-week high of Rs 49.15 per share touched on January 5, 2022.
The surge in the counter is mainly due to the expiry of derivative contracts (Futures and Options) of January-February-March. While the new contracts will start trading from Tuesday morning from 10 am onwards, as per the NSE circular.
The expiry of contracts today is because the ex-date of the company’s demerger announced in December is on Tuesday, January 11, 2022 and the record date is on Wednesday, January 12, 2022, Zee Business Senior Research Analyst Varun Dubey explains in a report.
Amid contracts expiry, the stock will be dropped from BSE 500, BSE 200, and all other indices. GMR Infra, which has airport business will be listed on Tuesday, the analyst said, further expecting that GMR Power will be listed somewhere in February.
Earlier in December, the company had decided to demerge its airport and non-airport businesses, between GMR Infrastructure, which will have only airport business and GMR Power Infra will have all other businesses such as energy and highways.
According to the scheme, each shareholder of GMR Infrastructure will get 1 share of GMR Power against 10 held. Moreover, Rs 1700 crore debt will go to GMR Infra and while remaining Rs 2900 crore will go to GMR Power.
Quoting brokerage houses, Dubey said, “If investors should mark for physical settlement of GMR shares, before 12 am today, and should square-off the positions or otherwise, the investors will have to go for physical settlement, which is little troublesome.”
At around 01:08 pm, the stock is up nearly 5 per cent to Rs 48.05 per share on the BSE, as compared to 0.9 per cent rise in the BSE Sensex.
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