GVK's 65-year-old patriarch has shed some of his conservatism and is stepping on the gas.
Private equity investor Actis is set to acquire a stake in infrastructure major GVK's power business for about Rs 1,000 crore, according to sources close to the development.
While sale of stake in airport business and adjacent land will help lower debt, improvement in power business is crucial.
The rating was downgraded despite 25 per cent held by stronger partner Indian Hotels, which operates the company's seven properties in India.
According to two independent sources in the know, GVK's lead underwriter, ICICI Bank, plans to reduce its exposure in the highly leveraged transaction. Following the move, the other PSU lenders have told GVK they, too, would like to proportionately bring down exposure.
FDI of $500 million will come into the country with the Cabinet Committee on Economic Affairs clearing a proposal of the GVK Power and Infrastructure Ltd to issue over 78 lakh shares to NRI shareholders of its sister concern GVK Industries Ltd.
GVK Airport Holdings, a subsidiary of Hyderabad-based infrastructure developer GVK Power & Infrastructure Limited (GVKPIL), has signed a share purchase agreement with Bid Services Division Mauritius (BSDM) to buy 13.5 per cent in Mumbai International Airport Private Limited (MIAL). The value of the deal was not disclosed.
The project, located 65 km north-west of the Alpha township, will rely on the railway infrastructure of the Alpha Coal project to transport coal to the Port of Abbot Point, Bowen.
GVKPIL Chief Financial Officer A Isaac George says that the company has targeted to increasing its power generation capacity to 10,000 Mw in five years. It also has big hopes in oil and gas exploration and in nuclear power generation.
The government has threatened to cancel the coal block alloted jointly to ArcelorMittal and GVK Power in Jharkhand for the inordinate delay in developing the property.
The sharp pullback in mid and smallcap stocks signals a cooling-off period in segments that previously attracted considerable investor interest.
Hyderabad-based diversified infra group GVK is likely to finalise stake dilution in its airport business over the next couple of months and the proceeds will be used to clear Rs 2,500-crore (Rs 25 billion) non-operational debt.
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FIRs have been registered against top officials of the aviation ministry, GVK Ltd and police department on a complaint that Mumbai International Airport Ltd (MIAL) received undue benefit to the tune of hundreds of crores of rupees from the government.
Torrent Power (up 19.25 per cent) and GVK Power and Infrastructure (up 12.22 per cent) have seen a dramatic rise in the run up to PGCIL issue.
Tata Power, GMR Energy and GVK Power are eyeing the capital's Rs 175-cr first waste-to-energy project.
Senior government officials said the company would be allowed a harmonious exit.
Two major hydel projects being built by construction majors GVK and L&T have suffered severe damages in the floods which hit Uttarakhand last week.
With the 330-Mw Alaknanda hydel project being built by infrastructure major GVK coming under the scanner, members of the high-powered committee set up by the Uttarakhand government last month, have launched a probe into the same.
Shares of Tata Group companies on Thursday rose up to 10 per cent, with Tata Chemicals and Tata Teleservices among the major gainers. Tata Sons Chairman Emeritus Ratan Tata, who played a key role in transforming the group into a global conglomerate, passed away late on Wednesday. He was 86. "Investors can pay tribute to Ratan Tata and the great corporate empire he built by buying stocks like TCS, Tata Motors, Tata Steel, Tata Consumer and Indian Hotels.
The Tamil Nadu government on Friday signed a memorandum of understanding (MoU) with Hyderabad-based GVK Group to set up a Rs 1,500-crore (Rs 15 billion) multi-products special economic zone in 3,000 acres in Perambalur district.
The panel also recommended deduction of bank guarantee of four mines, including one given jointly to the world's largest steel producer ArcelorMittal and GVK Powers, an official statement said.
ArcelorMittal, Anglo Australian major Rio Tinto, Hyderabad-based GVK Power & Infrastructure, Essar Mineral Resources and JSW Steel are among 10 prominent corporations in a shortlist to develop 18 abandoned coal mines owned by state-owned Coal India Ltd and its eight subsidiaries.
The Union government has threatened to cancel coal block allocations of as many as 17 companies for failure to develop those allotted to them years before. These include big companies such as Tata Iron and Steel, Sterlite Energy, GMR Energy, ArcelorMittal India, Reliance Energy, GVK Power, Lanco Group and Rungta Mines.
R-Infra quoted Rs 42-crore (Rs 420-million) premium over the bids of rival companies such as GVK Power and Infrastructure Limited, GMR Infrastructure, B Sennaih and C&C, JMC Srei and Sadhbhav, sources told Business Standard.
Billionaire Gautam Adani's Adani group on Monday said it has reached an agreement to acquire GVK group's shareholding and control of Mumbai airport.
Affected firms note practical problems in getting discoms, consumers to pay for costlier supply; viability shadow on investments
Bid date for Allahabad project postponed on fears of higher tariff quotes.
India Gas Solutions the equal joint venture between the two companies, is looking to sell LNG to five power producers in Andhra Pradesh - GMR, GVK, Lanco Infratech, Sravanthi Energy and Konaseema Gas.
Top names in the power and infrastructure sector, including Reliance Power, Lanco Kondapalli and Spanish firm Isolux Corsan, have evinced interest in setting up two power plants in Uttar Pradesh's Allahabad district.
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RPG Industries, Hindalco, SAIL, Jindal Steel, Monnet Ispat, GVK Power and Jaiprakash Associates among companies summoned for review.
According to officials, the Ganga was flowing at 463.20 metres following which water filled up in Sangam Ghat, Ramkund, Dhaneshwar Ghat and Fuladi Ghat. There was also a tremendous jump in the water level of the Ganga after 2,000-3,000 cusecs of water was released from the dam of the GVK hydroelectric project built on the Alaknanda river.
Those for power sector to see tussle between prior owners & new challengers
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Reliance Industries is believed to have signed agreements to sell gas from its eastern offshore KG D-6 fields to six power producers, including GVK, in Andhra Pradesh.
The decision was taken by the ministry this week, a top Coal Ministry official said, while refusing to reveal the names of the companies.
Ajit Mishra answers reader queries on the stock market.
Power generation and distribution is the most indebted sector
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
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