Shares of GMR Infrastructure skyrocketed by around nine percent on the Bombay Stock Exchange (BSE) on Monday in response to an arm of the Bengaluru-based Group winning a project to build a new airport in North Goa.
The GMR Infrastructure stock hit an intra-day high of Rs. 14.30, an increase of 9.24 percent over its Friday closing of Rs. 13.09. However, the stock pared gains later in the day to close at Rs. 13.30, a gain of 1.60 percent on the Bombay Stock Exchange.
On Saturday, the company announced that its subsidiary, GMR Airports had bagged a project to construct a Greenfield airport in North Goa. The airport will be built on the build, operate and transfer (BOT) model for a period of 40 years, extendable by 20 years.
The project reinforces the firm's credentials in the airport construction space, according to Srinivas Bommidala, Chairman Airports, GMR Group. The Group operates two airports in India, at Delhi and Hyderabad, in addition to the Mactan Cebu International Airport, Philippines.
The agreement gives GMR Airports 232 acres of land for commercial city side development for 60 years.
In other news, the GMR-held Delhi International Airport is planning to raise as much as $500 million via offshore bonds. The Bangalore-based firm intends to take advantage of low-interest rates and is in talks with investment bankers, according to a report in the Economic Times.
"We are aiming to complete the issue within this quarter before September 30," one of the people with knowledge of the matter was quoted as saying by the daily.