GMR Power and Urban Infra listing: Stock hits 5% lower circuit after being listed at Rs 46.50 per share on BSE
After demerging from GMR infra Ltd, shares of GMR Power and Urban Infra Ltd were listed on the exchanges (NSE on BSE) on Wednesday.
After demerging from GMR infra Ltd, shares of GMR Power and Urban Infra Ltd were listed on the exchanges (NSE on BSE) on Wednesday. For the first 10 days, the scrip will trade in the T-to-T category. Shares hit 5% lower circuit soon after listing at Rs 46.50 per equity share on the BSE and Rs 48 a share on the NSE.
"Trading Members of the Exchange are hereby informed that effective from March 23, 2022, the equity shares of GMR Power and Urban Infra Ltd are listed and admitted to dealings on the Exchange in the list of ''T'' Group Securities," read a statement from the BSE.
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GMR Infrastructure Ltd. (GIL) was earlier given persmission by the National Company Law Tribunal's (NCLT) for the demerger of non-airport businesses of the company. After the demerger, it split into two entities—GMR Infra and GMR Power and Urban Infra Limited (GPUIL).
In the demerger, existing shareholders of GMR Infrastructure were allowed to receive 1 equity share of Rs. 5 /-(Face value) each of GMR Power and Urban Infra Limited for holding 10 equity shares of Rs.1/- (Face value) share of each GMR Infrastructure Limited. The date of credit shares will be communicated from the registrar of the company.
What is demerger?
A demerger is a form of corporate restructuring in which the entity's business operations are segregated into one or more components. "A demerger can take place through a spin-off by distributed or transferring the shares in a subsidiary holding the business to company shareholders carrying out the demerger," explains ICICI Direct.
GMR Infrastructure is the flagship entity of GMR Group with presence across Airports, Energy, Transportation & Urban Infrastructure. The company operates Delhi & Hyderabad airports, which handle around 25- 27% of all India PAX traffic.
GMR Power and Urban Infra Limited (GPUIL), a subsidiary of GEPL, holds expertise in the sectors of Energy, Urban Infrastructure and Transportation.
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