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Adani Group stocks jump up to 7.6% after GVK Mumbai Airport deal
PTI
Last Updated IST
Passengers wait for their luggage at a conveyor belt at the Chhatrapati Shivaji International airport in Mumbai. Credits: Reuters
Passengers wait for their luggage at a conveyor belt at the Chhatrapati Shivaji International airport in Mumbai. Credits: Reuters

Adani Group stocks on Monday surged up to 7.6 percent, after the group said it will acquire GVK's stake in Mumbai airport to become the country's biggest private airport operator.

On BSE, Adani Green Energy jumped 7.65 percent, Adani Ports and Special Economic Zone rose by 5.24 percent and Adani Power 4.97 percent.

Shares of Adani Enterprises also gained 3.22 percent in morning trade, but later pared all the gains and were quoting nearly 2 percent lower.

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GVK Power and Infrastructure jumped 4.89 percent to Rs 3.43 -- its upper circuit limit.

Adani Group on Monday said it will acquire GVK's stake in Mumbai airport to become the country's biggest private airport operator, with a cumulative shareholding to 74 percent.

According to a regulatory filing, Adani Airport Holdings Ltd (AAHL), the flagship holding company of Adani Group for its airport business, "has entered into an agreement to acquire the debt of GVK Airport Developers Ltd (ADL) in Mumbai International Airport Ltd (MIAL), which will be converted into equity stake.

This conversion would lead to Adani Group getting all of 50.5 percent stake of GVK Group.

The group will also acquire another 23.5 percent of minority partners, Airports Company South Africa (ACSA), and Bidvest Group.

"The GVK Group and AAHL have agreed that AAHL will offer a stand-still to GVK, in addition, to release the guarantee given by GVK Power and Infrastructure Ltd with respect to the debt acquired by it," the company said in the filing.

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(Published 31 August 2020, 13:02 IST)