GMR Airports Infra shares rise over 5% as NIIF invests Rs 6.75 billion in Andhra Pradesh airport
At around 9:46 a.m., shares of GMR Airports Infrastructure Ltd traded 5.65 per cent or Rs 4.15, at Rs 77.54 apiece on BSE. The market capitalisation of the company stood at Rs 46,802.72 crore at around the same time.
GMR Airports Infrastructure Ltd shares extended gains for the second session and rose over 5 per cent on Friday, December 22. GMR Airports Infra stock touched an intra-day high of Rs 77.77 apiece, which was Rs 1.7 away from its 52-week high of Rs 79.47 apiece.
The stock rallied after the company's subsidiary agreed with the National Investment and Infrastructure Fund (NIIF) to develop and operate the Bhogapuram International Airport.
At around 9:46 a.m., shares of GMR Airports Infrastructure Ltd traded 5.65 per cent or Rs 4.15, at Rs 77.54 apiece on BSE. The market capitalisation of the company stood at Rs 46,802.72 crore at around the same time.
On Thursday, after market hours, GMR Airports Infra informed investors that NIIF would invest up to Rs 6.75 billion in GMR Visakhapatnam International Airport Limited (GVIAL), a special-purpose vehicle to develop and operate the Bhogapuram International Airport.
As per the filing, this investment is part of the financial partnership announced on December 7, 2022, between the parties concerning investment by NIIF in the equity capital of three airport projects of GMR Airports Limited.
This marks NIIF’s second airport investment, after its investment in GMR Goa International Airport Limited, which operates Manohar International Airport in Goa, was completed in April 2023.
GMR Visakhapatnam International Airport Limited (GVIAL) was awarded the concession in 2020 to develop and operate the greenfield Bhogapuram International Airport to the north of Visakhapatnam under a 40-year Design-Build-Finance-Operate-and-Transfer model.
The transaction envisages a primary investment by NIIF in the form of compulsory convertible debentures (CCDs), which will be issued by GVIAL. The transaction is subject to the customary completion of conditions precedent and necessary approvals.
GMR Airports Infrastructure share price: Past performance
Since January 2023, shares of GMR Airports Infrastructure have gained over 87 per cent against the Nifty 50's rise of over 17 per cent.
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