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Adani Group shares drop after it touches high of 7.6% post GVK deal

GVK Power and Infrastructure jumped 4.89 per cent to Rs 3.43, its upper circuit limit.

SNS | New Delhi |

Share price of Gautam Adani-led Adani Group jumped up to 7.6 per cent after the group announced that it will acquire 74 per cent of GVK’s stake in Mumbai International Airport Limited (MIAL) to become the country’s biggest private airport operator. But during the afternoon, group’s shares pared all the gains and were majorly quoting in negative territory.

On the BSE, Adani Green Energy had earlier gained 7.65 per cent, but at 1.55 p.m. it was at Rs 453.35, down by Rs 8.80 or 1.90 per cent.

Similarly, Adani Ports and Special Economic Zone that had gained 5.24 per cent, was during the afternoon it traded at Rs 361.95, up by Rs 2.35 or 0.65 per cent.

Adani Power to lots its opening gains of 4.97 per cent. At 1.56 p.m. it traded at Rs 38.45, down by Rs 0.75 or 1.91 per cent.

GVK Power and Infrastructure jumped 4.89 per cent to Rs 3.43, its upper circuit limit.

Earlier in the morning, Adani Group 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 per cent.

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 per cent stake of GVK Group. Along with this, the group will also acquire another 23.5 per cent 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.