GVK Power & Infrastructure Ltd has picked up Nagarjuna Construction's 9.5% stake in its subsidiary GVK Gautami Power Ltd.
Following this transaction, GVK Power’s stake has increased to 63.60% in the company, it informed the Bombay Stock Exchange. The shares of GVK Power were trading at Rs 44.05, up by Rs 0.05 or 0.11% at 11:15 am in the BSE.
Gautami Power is a 464-MW gas-based power project located at east Godavari district in Andhra Pradesh. GVK had earlier picked up a controlling stake of the firm from Satyam Group, and has been hiking its stake in the firm. Gautami Power was originally incorporated by Satyam Construction Company in 1996, to which NCC (Nagarjuna) Power Corporation Ltd merged in October 2000, according to the information available on the company website. The firm has commenced its operation in mid 2009, and is tied up with Reliance Industries Ltd and Niko Ltd for the supply of gas. GVK also has a 235-MW gas-based power plant in the same district.
GVK Power has operations across several infrastructure domains including power, roads and airports. The company is engaged in the development of Mumbai and Bangalore airports. It currently owns around 37% stake in Mumbai airport and another 29% stake in Bangalore International Airport Limited through its airport building subsidiary GVK Airport Developers Pvt Ltd.