GVK Power & Infrastructure shares rallied 16.4 percent in morning on Monday after the company increased its equity stake in Mumbai International Airport to 64 percent.
The stock was quoting at Rs 8.26, up Rs 0.88, or 11.92 percent on the BSE, at 10:15 hours IST.
On February 23, GVK Airport Holdings, a step down subsidiary of GVK Power & Infrastructure, said it has exercised its right to acquire 16.2 crore equity shares of Mumbai International Airport Limited (MIAL), constituting 13.5 percent of the total paid-up share capital of MIAL, from Bid Services Division (Mauritius) Limited.
It acquired those shares at the rate of Rs 77 per share.
Upon completion of this acquisition, equity shareholding of the GVK Group will increase to 64 percent from the existing 50.5 percent of the total paid-up share capital of MIAL, the company said.
The acquisition was as per their Shareholders Agreement dated April 4, 2006, and also in accordance with the various contractual agreements between GVK Airport Holdings and Bid Services Division (Mauritius) Limited.