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.
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.
The rating was downgraded despite 25 per cent held by stronger partner Indian Hotels, which operates the company's seven properties in India.
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.
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.
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.
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.
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.
The sharp pullback in mid and smallcap stocks signals a cooling-off period in segments that previously attracted considerable investor interest.
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.
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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.
Tata Power, GMR Energy and GVK Power are eyeing the capital's Rs 175-cr first waste-to-energy project.
Power generation and distribution is the most indebted sector
Senior government officials said the company would be allowed a harmonious exit.
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.
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.
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.
Combined debt-equity ratio of top companies declines but interest expenses outgrow profits.
Jaypee, Essar, GMR, GVK, Lanco, Abhijeet groups debt rise despite falling cash flow, says UBS
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.
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.
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.
Affected firms note practical problems in getting discoms, consumers to pay for costlier supply; viability shadow on investments
Those for power sector to see tussle between prior owners & new challengers
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
Ajit Mishra answers reader queries on the stock market.
Finance Minister Arun Jaitley last month pointed to the high cost of capital for India's businesses as a key factor behind a manufacturing slowdown.
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Indian companies are keenly waiting for reforms on rules related to land acquisition, labour, coal and power sector, and foreign direct investment in insurance sector.
Unlike RIL, the Adani group has not yet brought in any big stakeholders to refinance debt or expand.
Eight Sensex biggies such as Reliance, L&T, BHEL, SBI and ICICI Bank are among the worst hit.
Around 300 promoters serve their company boards for free.
With its new hybrid annuity model, the government is confident of getting more funds from India Inc.
RBI has identified about 50 cases for NPA resolution after it was empowered by the government to ask banks to initiate insolvency proceedings.
'This is part of our efforts to make it easier to do business.'
The government is auctioning 42 coal mines among 204 coal blocks.
In the context of market integrity, the IRAI and RBI should go over the minutes of the LIC and SBI board meetings when the decisions to invest in Adani equity or debt were taken, notes Jaimini Bhagwati, former World Bank treasury professional.
Among key stocks, Tata Motors, Hero MotoCorp, L&T, Wipro, ICICI Bank, Dr Reddy's Labs and ICICI Bank, all up between 1%-3%
Mumbai airport is the largest gateway for movement of pharma and agro products in the country.
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