Shares of GVK Power and Infrastructure climbed 6.6 percent intraday Wednesday after its airport subsidiary shortlisted bidders for stake sale.
"GVK Airport Services has short-listed five bidders to sell up to 49 percent for raising Rs 4,000 crore. The bidders, which include German airport operator AviAlliance (owned by Canadian pension fund PSP Investments), are likely to submit binding offers by January-end," a media report said quoting unnamed sources.
GVK Airport Services, which operates Mumbai and Bangalore international airports, is a fully owned subsidiary of the listed GVK Power & Infrastructure.
A report further said if the deal goes through, the company will drop its much talked about initial public offer (IPO) plans. GVK Airport plans to retire the entire Rs 3,600-crore debt following the stake sale.
Recently, sources told CNBC-TV18 that the infrastructure giant GVK Group is planning to restructure the debt of its Bengaluru & Mumbai airport and has approached public sector lender State Bank of India (SBI) to participate as third party for the Bengaluru debt restructuring.
The company that currently has a debt of Rs 24,500 crore is seeking to use the cash flows from Bengaluru restructuring for further expansion, sources said.
At 11:37 hours IST, the scrip of GVK Power & Infrastructure was quoting at Rs 8.33, up Rs 0.19, or 2.33 percent on the BSE.
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